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Paid Parental Leave and Families' Living Arrangements

Cygan-Rehm, Kamila (), Daniel Kühnle () and Regina Riphahn
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Cygan-Rehm, Kamila: University of Erlangen-Nuremberg
Daniel Kühnle: University of Erlangen-Nuremberg

No 11533, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: We examine how a paid parental leave reform causally affected families' living arrangements. The German reform we examine replaced a means-tested benefit with a universal transfer paid out for a shorter period. Combining a regression discontinuity with a difference-in-differences design, we find that the reform increased the probability that a newborn lives with non-married cohabiting parents. This effect results from a reduced risk of single parenthood among women who gained from the reform. We reject the economic independence hypothesis and argue that the reform effects for those who benefited from the reform are consistent with hypotheses related to the improved financial situation of new mothers after the reform and increased paternal involvement in childcare.

Keywords: single motherhood; cohabitation; marriage; living arrangements; parental leave; child well-being; early childhood (search for similar items in EconPapers)
JEL-codes: J12 J13 J18 I30 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur
Date: 2018-05
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Published in: Labour Economics, 2018, 53, 182 - 197

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