Arbeitspapier

Parental leave benefits and child penalties

I use the universe of tax returns in Germany and a regression kink design to estimate the impact of the benefit amount available to high-earning women after their first childbirth on subsequent within-couple earnings inequality. Lower benefit amounts result in a reduced earnings gap that persists beyond the benefit period for at least nine years after the birth. The longer-term impacts are driven by couples where the mother earned more than the father pre-birth. Simulations suggest it would take a 50% reduction in the benefit amount to completely eliminate long-run child penalties for sample couples. Lower benefits also reduce take-up of paid leave by mothers, lower the chances of having further children, and have no impact on marital stability.

Sprache
Englisch

Erschienen in
Series: DIW Discussion Papers ; No. 2016

Klassifikation
Wirtschaft
Equity, Justice, Inequality, and Other Normative Criteria and Measurement
Fiscal Policies and Behavior of Economic Agents: Household
Fertility; Family Planning; Child Care; Children; Youth
Economics of Gender; Non-labor Discrimination
Labor Law
Personnel Economics: Compensation and Compensation Methods and Their Effects
Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
Thema
Child penalties
gender inequality in earnings
social norms
parental leave policy
regression kink design

Ereignis
Geistige Schöpfung
(wer)
Waights, Sevrin
Ereignis
Veröffentlichung
(wer)
Deutsches Institut für Wirtschaftsforschung (DIW)
(wo)
Berlin
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Waights, Sevrin
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Entstanden

  • 2022

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