Life Cycle Effects of Parental Leave Duration on Maternal Health : Evidence from Three Policy Changes in Austria

I study the effect of parental leave duration on maternal health in the short- to long-run leveraging variation in parental leave duration induced by three Austrian policy reforms from 1990 to 2000. Using rich administrative data and a regression discontinuity framework, I find a hump-shaped relationship between parental leave length and maternal health. The first two reforms improve maternal health. However, health outcomes are getting worse with long leave of 2.5 years. Mental health mainly drives this effect. There is substantial heterogeneity with longer leave spells being more beneficial for low-SES mothers, mothers of girls, and mothers with unhealthy babies