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Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data

On 23rd April 2018 (1-2pm) Dr. Daniel Kuehnle, Research Fellow at the chair of Statistics and Empirical Economics at the University of Erlangen-Nürnberg, will give a presentation about “Parental leave policies and socio-economic gaps in child development: Evidence from a substantial benefit reform using administrative data” in Q4.245. Afterwards, Mr. Kuehnle will be available for questions and discussions. His presentation is part of: https://wiwi.uni-paderborn.de/dep1/me/research/discussing-research/seam/

Abstract:

This paper examines the effects of a substantial change in paid parental leave on child development and socio-economic development gaps. We exploit a German reform from 2007 that both expanded paid leave in the first year and removed paid leave in the second year following childbirth.

Higher-income households benefited relatively more from the reform than low-income households. We use rich administrative data from mandatory school entrance examinations at age six within a regression discontinuity design augmented with a difference-in-differences approach.

Our precise and robust estimates reveal no effect of the substantial changes in parental leave benefits on child development and on socio-economic development gaps. The reform mainly changed transitory household income and likely had a small effect on parental care time, which may explain the zero-effects on children.

 

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