In a model with endogenous fertility and labor supply three instruments of family policies are analyzed: child benefits, subsidies for external child care, and parental leave payments. We compare the impact on the quantity and quality of children, the secondary earner's labor supply and welfare....

We examine how a German paid parental leave reform causally affected early childhood living arrangements. The reform replaced a means-tested benefit with a universal transfer paid out for a shorter period. Using a difference-in-differences design, we find that the reform increased the...

This article investigates the effects of an increase in paid parental leave - twelve months instead of six months - on children's long-term life satisfaction. The historical setting under study, namely the former German Democratic Republic (GDR), allows us to circumvent problems of selection of...

Using German administrative data from the 1960s onward, this paper (i) examines the long-term evolution of child-related gender inequality in earnings and (ii) assesses the impact of family policies on this inequality. We present three sets of findings. First, child penalties (i.e., the...

Many countries are currently expanding access to child care for young children. But are all children equally likely to benefit from such expansions? We address this question by adopting a marginal treatment effects framework. We study the West German setting where high quality center-based care...

We study the design of a fair family policy in an economy where parenthood is regarded either as desirable or as undesirable, and where there is imperfect fertility control, leading to involuntary childlessness/parenthood. Using an equivalent consumption approach in the consumption-fertility...

In this paper we develop an overlapping generations model in which child care matters for human capital accumulation. We investigate whether an increase in labor supply brought about by a reduction in taxes is always associated with a reduction in parental time devoted to children, which...