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The Effect of Expansions in Maternity Leave Coverage on Children’s Long-Term Outcomes

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The Effect of Expansions in Maternity Leave Coverage on Children’s Long-Term Outcomes

This paper evaluates the impact of three major expansions in leave coverage in Germany on the longrun education and labor market outcomes of children. Evaluation of three policy reforms as opposed to a single reform enables us to analyze whether the impact of paid leave differs from that of unpaid leave, and whether an expansion of a relatively short leave period is more beneficial to child development than an expansion of an already long leave period. Our empirical analysis combines two large administrative data sources on wages, unemployment, and school outcomes. We identify the causal impact of the reforms by comparing outcomes of children born shortly before and shortly after a change in maternity leave legislation, and therefore require substantially weaker assumptions for identification than existing studies.


By AGF, UK and Germany..


Family and Children Policy Resource.