Impact of Child Disability on Parental Employment and Earnings: A Quasi- Experimental Study of Parents of Children with Disability in Norway

Abstract Background: Caring for a disabled child has both immediate and long-term economic costs that affect the well-being of children, parents, and society. The purpose of this study was to investigate the impact of child disability on parental employment and earnings by examining differences in care burden by parental gender, disability severity, and child age.Methods: The study included children with disabilities born between 2004 to 2011 and their mothers (n = 139,189) and fathers (n = 134,457). Longitudinal data on employment, working hours and labour earnings were obtained from Statistics Norway, specifically the National Education Database, the Central Population Register and the Event History Database. A quasi-experimental difference-in-differences model was used to examine differences in employment, working hours and earnings. Results: The results showed that caring for children with disabilities has a negative effect on mothers’ labour market participation, working hours and earnings. The more severe a child’s condition is, the more likely the mother is to work less or to stop working entirely. Additionally, mothers caring for school-age disabled children face a greater burden of care than mothers of disabled children of preschool age. Labour market participation, working hours, and labour earnings for fathers with less severe disabled children is comparable to those of fathers with non-disabled children. Caring for more severely disabled child reduces fathers' labour earnings but has no effect on their working hours or labour market participation.Conclusion: Policymakers and child welfare stakeholders should evaluate policy options and provide the necessary welfare support particularly to mothers caring for children with a more severe disability.