(), Katrine Vellesen Løken
() and Kjell Gunnar Salvanes
Pedro Carneiro: University College London, Postal: Department of Economics, University College London, Gower Street, London WC1E 6BT, United Kingdom, ,
Katrine Vellesen Løken: University of Bergen, Postal: Department of Economics, Fosswinckelsgt. 14, N-5007 Bergen, Norway
Kjell Gunnar Salvanes: Norwegian School of Economics and Business Administration, Postal: Department of Economics, Norwegian School of Economics, and Business Administration, Helleveien 30,, N-5035 Bergen-Sandviken, Norway
Abstract: We study the impact on children of increasing the time that the mother spends with her child in the first year by exploiting a reform that increased paid and unpaid maternity leave in Norway. The reform increased maternal leave on average by 4 months and family income was unaffected. The increased time with the child led to a 2.7 percentage points decline in high school dropout. For mothers with low education we find a 5.2 percentage points decline. The effect is especially large for children of mothers who prior to the reform, would take very low levels of unpaid leave.
64 pages, October 1, 2010
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