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      How Does Daddy at Home Affect Marital Stability?

      1 , 2

      The Economic Journal

      Oxford University Press (OUP)

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          Abstract

          We investigate whether paying fathers to stay at home with their newborn child affects marital stability. Our empirical analysis is based on a reform in Iceland that offered one month of parental leave earmarked to fathers with a child born on or after January 2001. This reform created substantial economic incentives for fathers to be more involved in caring for their children during their first months of life, and the take-up rate in the first year was 82.4%. We apply a regression discontinuity framework to assess the effect of this reform on the probability of separation among couples and find that parents who are entitled to paternity leave are less likely to separate. The effect persists throughout the first fifteen years after the child is born. Interestingly, the paternity leave has the strongest impact among couples where mother has higher, or equal, educational attainment to that of the father.

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          Author and article information

          Journal
          The Economic Journal
          Oxford University Press (OUP)
          0013-0133
          1468-0297
          January 28 2020
          January 28 2020
          Affiliations
          [1 ]Department of Finance, Copenhagen Business School, 2000 Frederiksberg, Denmark
          [2 ]Department of Economics, Copenhagen Business School, 2000 Frederiksberg, Denmark
          Article
          10.1093/ej/ueaa009
          © 2020

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