%0 Report %A Huebener, Mathias %A Kühnle, Daniel %A Spieß, C. Katharina %T Parental Leave Policies and Socio-Economic Gaps in Child Development: Evidence from a Substantial Benefit Reform Using Administrative Data %D 2018 %8 2018 Aug %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 11794 %U https://www.iza.org/publications/dp11794 %X 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. %K language skills %K motor skills %K school readiness %K child development %K parental leave benefit %K socio-emotional stability