Love Your Leave, Don't Leave Your Love! Paid Parental Leave and Children's Living Arrangements

42 Pages Posted: 28 Feb 2017

See all articles by Kamila Cygan-Rehm

Kamila Cygan-Rehm

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg

Daniel Kuehnle

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg

Regina T. Riphahn

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: February 09, 2017

Abstract

We examine how a German paid parental leave reform causally affected early childhood living arrangements. The reform replaced a means-tested benefit with a universal transfer paid out for a shorter period. Using a difference-in-differences design, we find that the reform increased the probability that a newborn lives with non-married cohabiting parents. This effect results from a reduced risk of single parenthood among women who gained from the reform. We reject the economic independence hypothesis and argue that the effects for reform winners are consistent with alternative hypotheses related to increased female financial attractiveness and increased paternal involvement in childcare.

Keywords: parental leave, living arrangements, marriage, cohabitation, single motherhood, child well-being, early childhood

JEL Classification: J120, J130, J180, I300

Suggested Citation

Cygan-Rehm, Kamila and Kuehnle, Daniel and Riphahn, Regina T., Love Your Leave, Don't Leave Your Love! Paid Parental Leave and Children's Living Arrangements (February 09, 2017). CESifo Working Paper Series No. 6319. Available at SSRN: https://ssrn.com/abstract=2924449

Kamila Cygan-Rehm

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg ( email )

Schloßplatz 4
Bavaria 91054
Germany

Daniel Kuehnle

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg ( email )

Lehrstuhl f. Statistik und emp. Wirtschaftsforschu
Lange Gasse 20
Nürnberg, 90403
Germany
+49-911-5302-256 (Phone)

Regina T. Riphahn (Contact Author)

University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg - Department of Economics ( email )

Lange Gasse 20
Nuernberg, D-90403
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Register to save articles to
your library

Register

Paper statistics

Downloads
26
Abstract Views
239
PlumX Metrics