Mom or preschool? How an extension to paid parental leave affects children's future education and employment
Abstract
In this study we quantify the impacts of the duration of paid parental leave on the education and future labor market outcomes of affected children when they reach 21-22 years of age. We examine the Czech Republic's 1995 reform of paid parental leave, which extended the duration of parental allowance receipt from 3 to 4 years.
This extension was not, however, accompanied by any extension of the job protection period that remained at 3 years. It also prevented the receiving parent to engage more substantially in the labour market, leading to one more year of full-time home child care.