Home with Mom: The Effects of Stay-at-Home Parents on Children’s Long-Run Educational Outcomes

Very interesting finding indeed!

In 1998 the Norwegian government introduced a program that increased parents’ incentives to stay home with children under the age of 3. Many eligible children had older siblings, and we investigate how this program affected the long-run educational outcomes of the older siblings. Using comprehensive administrative data, we estimate a difference-in-differences model that exploits differences in older siblings’ exposures to the program. We find a significant positive treatment effect on older siblings’ tenth-grade GPA, and this effect seems to be largely driven by mother’s reduced labor force participation and not by changes in family income or father’s labor force participation.

Source: 

Home with Mom: The Effects of Stay-at-Home Parents on Children’s Long-Run Educational Outcomes
 
Eric Bettinger, Torbjørn Hægeland, and Mari Rege
Journal of Labor Economics, Vol. 32, No. 3 (July 2014), pp. 443-467
Article DOI: 10.1086/675070
Article Stable URL: http://www.jstor.org/stable/10.1086/675070