TY - RPRT AU - Danzer, Natalia AU - Halla, Martin AU - Schneeweis, Nicole AU - Zweimüller, Martina TI - Parental Leave, (In)formal Childcare and Long-term Child Outcomes PY - 2017/May/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 10812 UR - https://www.iza.org/publications/dp10812 AB - We provide a novel interpretation of the estimated treatment effects from evaluations of parental leave reforms. Accounting for the counterfactual mode of care is crucial in the analysis of child outcomes and potential mediators. We evaluate a large and generous parental leave extension in Austria exploiting a sharp birthday cutoff-based discontinuity in the eligibility for extended parental leave and geographical variation in formal childcare. We find that estimated treatment effects on long-term child outcomes differ substantially according to the availability of formal childcare and the mother's counterfactual work behavior. We show that extending parental leave has significant positive effects on children's health and human capital outcomes only if the reform induces a replacement of informal childcare with maternal care. We conclude that care provided by mothers (or formal institutions) is superior to informal care-arrangements. KW - parental leave KW - formal childcare KW - informal childcare KW - child development KW - maternal labor supply KW - fertility ER -