Parental leave policies and child development: A review of empirical findings

Parental leave policies are a major policy tool used across OECD countries to support families before and after child birth. There are large differences across countries in the amount and the duration of benefit payments as well as leave entitlement periods. Despite these differences, the shared goal of parental leave policies is to reconcile family life and work, and support child development. While much research attention has been paid to the effects of parental leave policies on maternal labor supply, much less is known about their effects on child development and health. This DIW Roundup summarizes the international literature on parental leave policies and their impact on child outcomes. The literature suggests that the effects are small. However, research in this area is still relatively new and it is too early to draw conclusions about how the design of parental leave policies impacts on child development

G8 high school reform results in higher grade repetition rates and lower graduate age, but does not affect graduation rates

The G8 high school reform to reduce the total number of years spent at Gymnasium (Germany's academic-track secondary school) has been more controversial than almost any other education reform in recent years. Although there are few reliable empirical findings on the effects of the G8 reform, several federal states are already considering a return to the old system, which required 13 years - rather than 12 under the G8 system - for graduation from Gymnasium. A new study by DIW Berlin examines the different effects of the G8 reform using administrative data on all students who graduated from Gymnasium between 2002 and 2013. The study shows, among other things, that the G8 reform has reduced the age of graduation from Gymnasium by an average of ten months - and not the twelve months Gymnasium schooling was reduced by. One reason for this is that the share of students who repeated a grade during their time at Gymnasium rose by three percentage points - approximately a fifth - as a result of the reform. The sharpest rise in grade repetitions was seen in the final years (Oberstufe), with boys being more strongly affected on average than girls. The share of students who graduated from Gymnasium (thereby earning their university entrance qualification or Abitur), however, was unaffected by the G8 high school reform

Empirische Befunde zu Auswirkungen der G8-Schulzeitverkürzung

Die G8-Reform zur Verkürzung der Gymnasialschulzeit ist umstritten. Erste Bundesländer wollen inzwischen wieder von der 12-jährigen zur 13-jährigen Schulzeit bis zum Abitur zurückkehren, obwohl es bisher nur wenige verlässliche, empirische Befunde zur Wirkung der G8-Reform gibt. Der vorliegende Artikel gibt einen Überblick über bisherige Forschungsergebnisse zu den Auswirkungen der G8-Reform und diskutiert Herausforderungen bei der Ermittlung von kausalen Reformeffekten

Paid parental leave and child development: Evidence from the 2007 German parental benefit reform and administrative data

This paper examines the effects of a substantial change in publicly funded paid parental leave in Germany on child development and socio-economic development gaps. For children born before January 1, 2007, parental leave benefits were means-tested and paid for up to 24 months after childbirth. For children born thereafter, parental leave benefits were earnings-related and only paid for up to 14 months. Higher-income households benefited more from the reform than low-income households. We study the reform effects on children's language skills, motor skills, socio-emotional stability, and school readiness using administrative data from mandatory school entrance examinations at age six and a difference-in-differences design. We find no impact of the reform on child development and socio-economic development gaps. The effects are precisely estimated and robust to various model specifications and sample definitions. Our resultssuggest that such substantial changes in parental leave benefits are unlikely to impact children's development. These findings are consistent with recent studies showing that temporary unrestricted transfers and maternal part-time employment have a limited impact on parental investments in their children

The parental leave benefit: A key family policy measure, one decade later

On January 1, 2017, the parental leave benefit will be celebrating its tenth anniversary. Although its implementation was fervidly debated, it has become a widely accepted family policy measure. Its impact on parental labor supply, the division oflabor between parents, fertility, and indicators that reflect the well-being of parents and children have been examined from a variety of perspectives. A global evaluation of relevant economic studies shows that on average, when young familiesreceive the parental leave benefit as an earnings replacement benefit, their economic stability in the first year after childbirth increases. As a result of the parental leave benefit, the employment rate of mothers decreased in the first year after childbirth, while it increased in the second year. The share of fathers who take parental leave has clearly increased, while the effects on the division of labor within the family are inconclusive. Some evidence suggests that the parental leave benefit can even have an effect on fertility. Little is known about its impact on child development. Overall, although the parental leave benefit family policy measure has been successful in many areas, its targeted effects could be augmented by additional family policy reforms

Zehn Jahre Elterngeld: Eine wichtige familienpolitische Maßnahme

Am 1. Januar 2017 feiert das Elterngeld sein zehnjähriges Bestehen. Gleichwohl die Einführung von einigen Diskussionen begleitet war, ist es inzwischen eine familienpolitische Leistung mit hoher Akzeptanz. Ihre Wirkung auf die Erwerbstätigkeit der Eltern, die partnerschaftliche Arbeitsteilung, die Fertilität und andere Indikatoren, welche das Wohlbefinden von Familien widerspiegeln, wurden aus unterschiedlichen Perspektiven untersucht. Eine zusammenfassende Auswertung primär ökonomischer Studien zeigt, dass das Elterngeld als Lohnersatzleistung die wirtschaftliche Stabilität junger Familien im ersten Jahr nach der Geburt eines Kindes im Durchschnitt erhöht. Die Erwerbstätigkeit von Müttern im ersten Lebensjahr nach Geburt hat durch das Elterngeld ab-, und im zweiten Lebensjahr zugenommen. Während der Anteil von Vätern in Elternzeit stark gestiegen ist, sind die Effekte auf die partnerschaftliche Arbeitsteilung nicht eindeutig. Effekte auf die Fertilität sind teilweise nachzuweisen. Der Einfluss auf die kindliche Entwicklung wurde bisher kaum untersucht. Insgesamt handelt es sich bei dem Elterngeld um eine in vielen Bereichen erfolgreiche familienpolitische Maßnahme, deren zielorientierte Wirkung allerdings durch weitere familienpolitische Reformen verstärkt werden könnte.On January 1, 2017, the parental leave benefit will be celebrating its tenth anniversary. Although its implementation was fervidly debated, it has become a widely accepted family policy measure. Its impact on parental labor supply, the division oflabor between parents, fertility, and indicators that reflect the well-being of parents and children have been examined from a variety of perspectives. A global evaluation of relevant economic studies shows that on average, when young familiesreceive the parental leave benefit as an earnings replacement benefit, their economic stability in the first year after childbirth increases. As a result of the parental leave benefit, the employment rate of mothers decreased in the first year after childbirth, while it increased in the second year. The share of fathers who take parental leave has clearly increased, while the effects on the division of labor within the family are inconclusive. Some evidence suggests that the parental leave benefit can even have an effect on fertility. Little is known about its impact on child development. Overall, although the parental leave benefit family policy measure has been successful in many areas, its targeted effects could be augmented by additional family policy reforms

Baby bumps and abortion drop: unpacking fertility trends during COVID-19 in Germany

Although abortion trends can be highly informative for understanding fertility reactions amid COVID-19 pandemic, this perspective is rarely taken yet. In contrast to many other countries, Germany has reached above-average fertility rates in the first years of the pandemic. However, in-depth subgroup analyses of these trends are lacking. This paper aims at an in-depth investigation of changes in births and abortions in Germany from the start of the COVID-19 pandemic up to the end of 2021, with a specific focus on the context of public containment measures over time and relevant subgroups. Using augmented interrupted time series models, we analyze official birth and abortion statistics across different socio-demographic groups and regions. We first document two significant "baby bumps", the first arising from conceptions after the first lockdown, the second during the second lockdown. Abortions remained at similar levels during the first year of the pandemic but declined significantly in later periods during the first three quarters of 2021 when the healthcare system was under strain. The magnitude of the drop in abortions corresponds to 43% of the increase in births of the second baby bump. Subgroup analyses show that our findings apply to various socio-demographic groups and are most pronounced among individuals aged 25 to 39 years. The fertility patterns contrast with trends in many high-income countries. We argue that Germany's robust social policies were likely to have stabilized total fertility rates during the crisis; however, the drop in abortions could also have contributed to this. Our study draws a nuanced picture of how the COVID-19 health crisis affected reproductive health outcomes. Analyses of fertility patterns during crises should pay attention to changes in abortions

The role of family risk attitudes in education and intergenerational mobility: An empirical analysis

This paper analyses the role of family risk attitudes in intergenerational mobility in incomes and education. Based on 1984-2009 data of sons and fathers from the German Socio-Economic Panel Survey, there is evidence suggesting that sons with risk taking fathers have a significantly higher educational mobility and persistently higher income mobility than peers with risk averse fathers. They obtain significantly higher levels of education, which would be justified by modest evidence on higher returns to education. The relationship seems more complex for sons' own risk attitudes. Risk taking sons experience higher educational mobility, but there is no difference in income mobility to risk averse sons. There are no considerable differences in the levels of education, but modest evidence suggesting lower returns to education for risk taking sons. The findings improve the understanding of the intergenerational transmission mechanism of economic status and show that family risk attitudes impact economic mobility. The study suggests an important intergenerational link between fathers' risk attitudes and sons' levels of education, which has not received much attention in the literature