TY - RPRT AU - Cygan-Rehm, Kamila AU - Kühnle, Daniel AU - Riphahn, Regina T. TI - Paid Parental Leave and Families' Living Arrangements PY - 2018/May/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 11533 UR - https://www.iza.org/index.php/publications/dp11533 AB - We examine how a paid parental leave reform causally affected families' living arrangements. The German reform we examine replaced a means-tested benefit with a universal transfer paid out for a shorter period. Combining a regression discontinuity with a difference-in-differences design, we find that the reform increased the probability that a newborn lives with non-married cohabiting parents. This effect results from a reduced risk of single parenthood among women who gained from the reform. We reject the economic independence hypothesis and argue that the reform effects for those who benefited from the reform are consistent with hypotheses related to the improved financial situation of new mothers after the reform and increased paternal involvement in childcare. KW - single motherhood KW - cohabitation KW - marriage KW - living arrangements KW - parental leave KW - child well-being KW - early childhood ER -