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Parental Leave and Long-Term Life Satisfaction of Children - Quasi-Experimental Evidence from Former East Germany

Author

Listed:
  • Katharina Heisig
  • Larissa Zierow

Abstract

This study investigates the impact of an increase in paid parental leave — twelve instead of five months — on children’s long-term life satisfaction. Our setting, former East Germany, features high labor market participation of mothers and universal supply of standardized childcare. It thus mitigates identification issues such as selection into the labor market and provides a clear counterfactual to maternal care. Applying a difference-in-differences design we exploit the specific timing of parental leave reforms in 1976 and 1986. We find a significant and robust positive effect on now-adult children’s life satisfaction, and show that long-run subjective well-being can already be impacted by policies during the first year of an individual’s life.

Suggested Citation

  • Katharina Heisig & Larissa Zierow, 2019. "Parental Leave and Long-Term Life Satisfaction of Children - Quasi-Experimental Evidence from Former East Germany," CESifo Working Paper Series 7806, CESifo.
    • Handle: RePEc:ces:ceswps:_7806
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp7806.pdf
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    Cited by:

    1. Katharina Heisig & Larissa Zierow, 2020. "Elternzeitverlängerung in der DDR: Langfristig höhere Lebenszufriedenheit der Kinder," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 27(02), pages 07-09, April.

    More about this item

    Keywords

    parental leave; well-being; childcare; child development;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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