published in: Journal of Population Economics, 2023, 36 (4), 2309-2345
Can a policy intervention in the stressful first year after a birth affect marital stability? We examine this question using a large expansion in maternity benefits in 1982 in the Baltic countries of Estonia, Latvia and Lithuania. The program provided partially paid leave until the child's first birthday and included a small cash payment at birth.
We use individual-level panel data and compare the Baltics with similar East European countries using a difference-indifferences framework. Maternity benefits decrease divorce within the first year after birth. This decrease persists for at least a decade, indicating that couples avoided divorce altogether rather than simply delaying it. While mothers extended their leave by several months, they returned to full-time work afterwards, consistent with egalitarian gender norms in the labor market.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.