Carneiro, Pedro Loken, Katrine V. Salvanes, Kjell G.
Year of Publication:
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5362
We study the impact on children of increasing the time that the mother spends with her child in the first year by exploiting a reform that increased paid and unpaid maternity leave in Norway. The reform increased maternal leave on average by 4 months and family income was unaffected. The increased time with the child led to a 2.7 percentage points decline in high school dropout. For mothers with low education we find a 5.2 percentage points decline. The effect is also especially large for children of mothers who, prior to the reform, would take very low levels of unpaid leave.