Abstract

This article studies a change in paid maternity leave entitlements in Chile. We exploit a reform that increased paid leave from 12 to 24 weeks for mothers of children born on 25 July 2011 or later. We estimate the effects of reform exposure on different children and maternal outcomes finding significant and positive effects on children's cognitive abilities, especially for those with less educated mothers. There is an increase in the probability of breastfeeding at least six months and breastfeeding durations. Maternal stress exhibits a significant reduction and there is an increase in employment of exposed mothers after maternity leave.