Parental leave benefits, household labor supply, and children's long-run outcomes
Rita Ginja (),
Jenny Jans and
Arizo Karimi ()
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Jenny Jans: Institute for Fiscal Studies
Arizo Karimi: Institute for Fiscal Studies and Uppsala University
No W18/26, IFS Working Papers from Institute for Fiscal Studies
We study how parental leave benefit levels affect household labor supply, family income, and child outcomes, exploiting the Speed Premium (SP) in the Swedish leave system. The SP grants mothers higher benefits for a subsequent child without re-establishing eligibility through market work, if two births occur within a pre-specified interval. We use the spacing eligibility cutoffs in a Regression Discontinuity framework and find that the SP improves educational outcomes of the older child, but not of the younger. Impacts are likely driven by increased maternal time and the quality of maternal time relative to the counterfactual mode of care.
Keywords: parental leave benefits; child outcomes; labour supply (search for similar items in EconPapers)
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