2025/09/02 by Sevrin Waights · 1 voice
Social Sciences · #Gender, Labor, and Family Dynamics #Retirement, Disability, and Employment #Work-Family Balance Challenges
paper · doi:10.1093/ej/ueaf078
openalex publication_date 2025/09/02 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/30
Abstract I use the universe of tax returns in Germany and a regression kink design to estimate the impacts of mothers’ parental leave benefit amounts on within-couple earnings inequality. I make use of a benefits cap to estimate the causal impacts for high-earning women: a group for which earnings inequality is particularly large. A lower mother's benefit amount results in a reduced gender gap in earnings 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 her partner pre-birth. Simulations suggest that a 10% reduction in the benefit amount could reduce long-run child penalties in sample couples from 63% to 46%.