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Journal of Political Economy Vol. 123 No. 2 2015

A Flying Start? Maternity Leave Benefits and Long-Run Outcomes of Children

Pedro Carneiro1,2; Katrine V. Løken3,4; Kjell G. Salvanes3,5

1 Institute for Fiscal Studies · 2 University College London · 3 IZA - Institute of Labor Economics · 4 University of Bergen · 5 Norwegian School of Economics

Abstract

We study a change in maternity leave entitlements in Norway. Mothers giving birth before July 1, 1977, were eligible for 12 weeks of unpaid leave, while those giving birth after that date were entitled to 4 months of paid leave and 12 months of unpaid leave. The increased time spent with the child led to a 2 percentage point decline in high school dropout rates and a 5 percent increase in wages at age 30. These effects were larger for the children of mothers who, in the absence of the reform, would have taken very low levels of unpaid leave.

DOI
10.1086/679627
Volume
123
Issue
2
Pages
365-412
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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