← Search

The Review of Economics and Statistics Vol. 98 No. 4 2016

What Is the Case for Paid Maternity Leave?

Gordon B. Dahl1; Katrine V. Løken2; Magne Mogstad3; Kari Vea Salvanes4

1 University of California San Diego · 2 University of Bergen · 3 Statistics Norway · 4 University of Oslo

Abstract

We assess the case for generous government-funded maternity leave, focusing on a series of policy reforms in Norway that expanded paid leave from 18 to 35 weeks. We find the reforms do not crowd out unpaid leave and that mothers spend more time at home without a reduction in family income. The increased maternity leave has little effect on children's schooling, parental earnings and labor force participation, completed fertility, marriage, or divorce. The expansions, whose net costs amounted to 0.25% of GDP, have negative redistribution properties and imply a considerable increases in taxes at a cost to economic efficiency.

DOI
10.1162/rest_a_00602
Volume
98
Issue
4
Pages
655-670
Language
en
Sources
openalex crossref

Cite