How Does Daddy at Home Affect Marital Stability?

  title={How Does Daddy at Home Affect Marital Stability?},
  author={Arna Olafsson and Herdis Steingrimsdottir},
  journal={The Economic Journal},
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… 

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