@article {Danzer0619-10257R1, author = {Natalia Danzer and Martin Halla and Nicole Schneeweis and Martina Zweim{\"u}ller}, title = {Parental Leave, (In)formal Childcare and Long-Term Child Outcomes}, elocation-id = {0619-10257R1}, year = {2020}, doi = {10.3368/jhr.58.2.0619-10257R1}, publisher = {University of Wisconsin Press}, abstract = {We evaluate the effect of an Austrian parental leave extension from the child{\textquoteright}s first to its 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{\textquoteright}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.}, issn = {0022-166X}, URL = {https://jhr.uwpress.org/content/early/2020/11/04/jhr.58.2.0619-10257R1}, eprint = {https://jhr.uwpress.org/content/early/2020/11/04/jhr.58.2.0619-10257R1.full.pdf}, journal = {Journal of Human Resources} }