@TechReport{iza:izadps:dp11794, author={Huebener, Mathias and Kühnle, Daniel and Spieß, C. Katharina}, title={Parental Leave Policies and Socio-Economic Gaps in Child Development: Evidence from a Substantial Benefit Reform Using Administrative Data}, year={2018}, month={Aug}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={11794}, url={https://www.iza.org/index.php/publications/dp11794}, abstract={This paper examines the effects of substantial changes in paid parental leave on child development and socio-economic development gaps. We exploit a German reform from 2007 that both expanded paid leave in the first year and removed paid leave in the second year following childbirth. Higher-income households benefited relatively more from the reform than low-income households. We use administrative data from mandatory school entrance examinations containing detailed child development assessments at age six within a difference-in-differences approach. Our precise and robust estimates reveal no effects of the changes in parental leave benefits on child development across various socio-economic groups, and consequently no effects on socio-economic development gaps.}, keywords={language skills;motor skills;school readiness;child development;parental leave benefit;socio-emotional stability}, }