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Parental leave benefits, household labor supply, and children's long-run outcomes

Author

Listed:
  • Rita Ginja

    (Institute for Fiscal Studies and University of Bergen)

  • Jenny Jans

    (Institute for Fiscal Studies)

  • Arizo Karimi

    (Institute for Fiscal Studies and Uppsala University)

Abstract

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.

Suggested Citation

  • Rita Ginja & Jenny Jans & Arizo Karimi, 2018. "Parental leave benefits, household labor supply, and children's long-run outcomes," IFS Working Papers W18/26, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:18/26
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    parental leave benefits; child outcomes; labour supply;
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