Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185254 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11794
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper examines the effects of substantial changes 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 administrative data from mandatory school entrance examinations containing detailed child development assessments at age six within a difference-in-differences approach. Our precise and robust estimates reveal no effects of the changes in parental leave benefits on child development across various socio-economic groups, and consequently no effects on socio-economic development gaps.
Subjects: 
parental leave benefit
child development
school readiness
motor skills
language skills
socio-emotional stability
JEL: 
J13
J18
J22
J24
Document Type: 
Working Paper

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