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Research ArticleArticles

Parental Leave, (In)formal Childcare, and Long-Term Child Outcomes

View ORCID ProfileNatalia Danzer, View ORCID ProfileMartin Halla, View ORCID ProfileNicole Schneeweis and View ORCID ProfileMartina Zweimüller
Journal of Human Resources, November 2022, 57 (6) 1826-1884; DOI: https://doi.org/10.3368/jhr.58.2.0619-10257R1
Natalia Danzer
Natalia Danzer is Professor for Empirical Economics and Gender at the Freie Universität Berlin, Germany, a Research Professor at the ifo Institute, Munich, Germany, a Research Fellow at the IZA, and a Research Affiliate of CESifo ().
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Martin Halla
Martin Halla is Full Professor of Economics at the Johannes Kepler University Linz, Austria, a Research Fellow at IZA, a Research Affiliate at the Christian Doppler Laboratory for Aging, Health and the Labor Market, Austria, and a Permanent Scientific Consultant at the Austrian Public Health Institute in Vienna.
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Nicole Schneeweis
Nicole Schneeweis is Associate Professor at the Johannes Kepler University Linz, Austria, a Research Affiliate at the Christian Doppler Laboratory for Aging, Health and the Labor Market, Austria, a Research Fellow at the IZA, and a Research Affiliate at the CEPR.
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Martina Zweimüller
Martina Zweimüller is Assistant Professor at the Johannes Kepler University Linz, Austria, and a Research Affiliate at the Christian Doppler Laboratory for Aging, Health and the Labor Market, Austria.
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ABSTRACT

We evaluate the effect of an Austrian parental leave extension from the child’s first to their second birthday on long-term child outcomes. Exploiting a sharp birthday cutoff-based discontinuity in the eligibility for extended leave, we find that longer parental leave improves on average child health outcomes, but has no effect on the child’s labor market outcomes. When accounting for the counterfactual mode of care, we find significant gains in all outcomes for children for whom the reform most likely induced a replacement of informal childcare with maternal care. This highlights the importance of the counterfactual scenario in such evaluations.

JEL Classification:
  • J13
  • H52
  • J22
  • J12
  • I38
  • Received June 2019.
  • Accepted August 2020.
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Journal of Human Resources: 57 (6)
Journal of Human Resources
Vol. 57, Issue 6
1 Nov 2022
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Parental Leave, (In)formal Childcare, and Long-Term Child Outcomes
Natalia Danzer, Martin Halla, Nicole Schneeweis, Martina Zweimüller
Journal of Human Resources Nov 2022, 57 (6) 1826-1884; DOI: 10.3368/jhr.58.2.0619-10257R1

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Parental Leave, (In)formal Childcare, and Long-Term Child Outcomes
Natalia Danzer, Martin Halla, Nicole Schneeweis, Martina Zweimüller
Journal of Human Resources Nov 2022, 57 (6) 1826-1884; DOI: 10.3368/jhr.58.2.0619-10257R1
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Keywords

  • J13
  • H52
  • J22
  • J12
  • I38
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