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Intra-Household Allocation of Parental Leave

Author

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  • Paula E. GOBBI

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES) and FNRS)

  • Juliane Parys

    (Mc Kinsey & Company)

  • Gregor Schwerhoff

    (Mercator Research Institute on Global Commons and Climate Change (MCC),Berlin)

Abstract

We introduce childcare sharing in a collective model of household behavior to investigate which factors make spouses increase or decrease their share of parental leave. The concern about future consumption motivates parents to invest in their human capital and to limit their leave duration. Using relative income and the age difference between spouses as distribution factors, we cannot reject Pareto efficiency in childcare sharing. Higher relative incomes and larger age differences shift the conditional leave allocation towards the relatively poorer and younger partner, respectively. Households with higher total income purchase more professional childcare.

Suggested Citation

  • Paula E. GOBBI & Juliane Parys & Gregor Schwerhoff, 2015. "Intra-Household Allocation of Parental Leave," LIDAM Discussion Papers IRES 2015020, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    • Handle: RePEc:ctl:louvir:2015020
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    Cited by:

    1. Thomas Høgholm Jørgensen & Jakob Egholt Søgaard, 2021. "Welfare Reforms and the Division of Parental Leave," CEBI working paper series 21-09, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    2. Libertad González & Hosny Zoabi, 2021. "Does Paternity Leave Promote Gender Equality within Households?," CESifo Working Paper Series 9430, CESifo.
    3. Fortin, Bernard & Ragued, Safa, 2017. "Does temporary interruption in postsecondary education induce a wage penalty? Evidence from Canada," Economics of Education Review, Elsevier, vol. 58(C), pages 108-122.
    4. Hélène Périvier & Gregory Verdugo, 2021. "Can parental leave be shared?," SciencePo Working papers Main hal-03364048, HAL.

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    More about this item

    Keywords

    Childcare sharing; parental leave; collective model; sharing rule; gender;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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