Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules
Rita Ginja (),
Jenny Jans () and
Arizo Karimi ()
No 11106, IZA Discussion Papers from Institute of Labor Economics (IZA)
How do parental resources early in life affect children's health and schooling outcomes? We address this question by exploiting the so-called speed premium (SP) in the Swedish parental leave (PL) system. The SP grants mothers higher PL benefits for the subsequent child without the need to re-quality for benefits through pre-birth market work, if the two births occur within a pre-specified interval. The eligibility birth interval for this automatic renewal of PL benefits was set to 24 months in 1980â€“1985, and to 30 months since 1986. This allow us to use a Regression Discontinuity framework to study how additional parental time and monetary resources impacts both the existing and new child's educational and health outcomes. We find that maternal eligibility to the SP increases the 9th grade GPA, and the likelihood of college attendance of the first-born child, but it does not affect the secondborn. These impacts can be generalized for higher-order parities. The effects are prevalent primarily among children to high-income mothers. Impacts are driven by a combination of a persistent positive income shock, and substitution away from informal care to maternal time.
Keywords: parental leave; earnings; time investments; child outcomes (search for similar items in EconPapers)
JEL-codes: J13 J22 J18 (search for similar items in EconPapers)
Pages: 71 pages
New Economics Papers: this item is included in nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Published as 'Parental Leave Benefits, Household Labor Supply, and Children's Long-Run Outcomes'in: Journal of Labor Economics, 2020, 38 (1), 261-320.
Downloads: (external link)
Working Paper: Parental Investments in Early Life and Child Outcomes. Evidence from Swedish Parental Leave Rules (2017)
Working Paper: Parental Investments in Early Life and Child Outcomes: Evidence from Swedish Parental Leave Rules (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11106
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().