RT Journal Article
SR Electronic
T1 Parental Leave, (In)formal Childcare and Long-Term Child Outcomes
JF Journal of Human Resources
FD University of Wisconsin Press
SP 0619-10257R1
DO 10.3368/jhr.58.2.0619-10257R1
A1 Natalia Danzer
A1 Martin Halla
A1 Nicole Schneeweis
A1 Martina Zweimüller
YR 2020
UL http://jhr.uwpress.org/content/early/2020/11/04/jhr.58.2.0619-10257R1.abstract
AB We evaluate the effect of an Austrian parental leave extension from the child’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’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.