Journal Article

Social differentials in speed-premium effects in childbearing in Sweden

Abstract

In Sweden, parents receive a parental-leave allowance of a high percentage (currently 80%) of their pre-birth salary for about a year in connection with any birth. If they space their births sufficiently closely, they avoid a reduction in the allowance caused by any reduced income earned between the births. The gain is popularly called a "speed premium". In previous work we have shown that childbearing was sped up following the introduction of the "speed premium". This is clear evidence of a causal effect of a policy change on childbearing behavior. In the present article, we study how this change in behavior was adopted in various social strata of the Swedish population.