Negative effects of long parental leave on maternal health: Evidence from a substantial policy change in Austria

Abstract

I study the effect of parental leave duration on maternal health in the short- to medium-run leveraging variation in parental leave duration induced by an Austrian policy reform in the year 2000. Using rich administrative data and a regression discontinuity framework, I find that long parental leave of 2.5 years instead of 1.5 years deteriorates maternal health. Worse mental health mainly drives this effect. Alternative channels such as differential fertility, long-term employment effects, a change in disposable income or alternative mode of childcare are unlikely to be of main importance. There is substantial heterogeneity with longer leave spells being less harmful for mothers with unhealthy babies proxied by low birth weight.