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The effect of own and spousal parental leave on earnings

Author

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  • Johansson, Elly-Ann

    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

This paper investigates the effect of parental leave – both own and spousal – on subsequent earnings using different sources of variation. Using fixed-effect models, and in line with previous results, parental leave is found to decrease each parent’s future earnings. Also spousal leave is important, but only for mothers. In fact, each month the father stays on parental leave has a larger positive effect on maternal earnings than a similar reduction in the mother’s own leave. Using two reforms of the parental leave system as exogenous sources of variation yields only imprecisely estimated effects, even though the reforms had a strong effect on parental leave usage. However, the point estimates tentatively suggest effects in the same range or larger than the fixed-effects model found.

Suggested Citation

  • Johansson, Elly-Ann, 2010. "The effect of own and spousal parental leave on earnings," Working Paper Series 2010:4, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2010_004
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    Citations

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    Cited by:

    1. Moberg, Ylva, 2019. "Speedy responses: Effects of higher benefits on take-up and division of parental leave," Working Paper Series 2019:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    2. Christina Boll & Julian Leppin & Nora Reich, 2014. "Paternal childcare and parental leave policies: evidence from industrialized countries," Review of Economics of the Household, Springer, vol. 12(1), pages 129-158, March.
    3. Boye, Katarina, 2015. "Care more, earn less? The association between care leave for sick children and wage among Swedish parents," Working Paper Series 2015:18, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    4. Angela Carollo & Anna Oksuzyan & Sven Drefahl & Carlo Giovanni Camarda & Linda Juel Ahrenfeldt & Kaare Christensen & Alyson van Raalte, 2019. "Is the age difference between partners related to women's earnings?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 41(15), pages 425-460.
    5. Daniel Avdic & Arizo Karimi, 2018. "Modern Family? Paternity Leave and Marital Stability," American Economic Journal: Applied Economics, American Economic Association, vol. 10(4), pages 283-307, October.
    6. Molly Mayer & Céline Le Bourdais, 2019. "Sharing Parental Leave Among Dual-Earner Couples in Canada: Does Reserved Paternity Leave Make a Difference?," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 38(2), pages 215-239, April.
    7. Allison Dunatchik & Berkay Özcan, 2019. "Reducing Mommy Penalties with Daddy Quotas," CASE Papers /213, Centre for Analysis of Social Exclusion, LSE.
    8. Teresa Jurado-Guerrero & Jacobo Muñoz-Comet, 2021. "Design Matters Most: Changing Social Gaps in the Use of Fathers’ Leave in Spain," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(3), pages 589-615, June.
    9. Farré, Lídia, 2016. "Parental Leave Policies and Gender Equality: A Survey of the Literature/Permisos de Paternidad e igualdad de género: Una revisión de la literatura," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 45-60, Enero.
    10. Canaan, Serena, 2022. "Parental leave, household specialization and children’s well-being," Labour Economics, Elsevier, vol. 75(C).
    11. Pierre-Jean Messe & Jeremy Tanguy, 2022. "Does gender equality bargaining reduce child penalty? Evidence from France," TEPP Working Paper 2022-19, TEPP.
    12. Moberg, Ylva, 2018. "Speedy Responses: Effects of Higher Benefits on Take-up and Division of Parental Leave," Working Paper Series 2018:14, Uppsala University, Department of Economics.
    13. Mari Rege & Ingeborg Solli, 2013. "The Impact of Paternity Leave on Fathers’ Future Earnings," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2255-2277, December.
    14. Rieck, Karsten Marshall Elseth, 2012. "Does Child Care Affect Parents’ Sickness Absence? Evidence From A Norwegian Paternity Leave Reform," Working Papers in Economics 14/12, University of Bergen, Department of Economics.
    15. Marianne Bertrand, 2018. "Coase Lecture – The Glass Ceiling," Economica, London School of Economics and Political Science, vol. 85(338), pages 205-231, April.
    16. Pia S. Schober & Gundula Zoch, 2015. "Change in the Gender Division of Domestic Work after Mummy or Daddy Took Leave: An Examination of Alternative Explanations," SOEPpapers on Multidisciplinary Panel Data Research 803, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Ann-Zofie Duvander & Trude Lappegard & Mats Johansson, 2020. "Impact of a Reform Towards Shared Parental Leave on Continued Fertility in Norway and Sweden," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(6), pages 1205-1229, December.
    18. Emily Nix & Martin Eckhoff Andresen, 2019. "What Causes the Child Penalty? Evidence from Same Sex Couples and Policy Reforms," Discussion Papers 902, Statistics Norway, Research Department.
    19. Sara Cools & Jon H. Fiva & Lars J. Kirkebøen, 2015. "Causal Effects of Paternity Leave on Children and Parents," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(3), pages 801-828, July.
    20. Trude Lappegård & Ann-Zofie Duvander & Gerda Neyer & Ida Viklund & Synøve N. Andersen & Ólöf Garðarsdóttir, 2020. "Fathers’ Use of Parental Leave and Union Dissolution," European Journal of Population, Springer;European Association for Population Studies, vol. 36(1), pages 1-25, March.
    21. Elisabeth Ugreninov, 2013. "Can Family Policy Reduce Mothers’ Sick Leave Absence? A Causal Analysis of the Norwegian Paternity Leave Reform," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 435-446, December.
    22. Ann-Zofie Duvander & Eleonora Mussino & Jussi Tervola, 2021. "Similar Negotiations over Childcare? A Comparative Study of Fathers’ Parental Leave Use in Finland and Sweden," Societies, MDPI, vol. 11(3), pages 1-17, June.
    23. Anna Oksuzyan & Angela Carollo & Sven Drefahl & Carlo G. Camarda & Kaare Christensen & Alyson A. van Raalte, 2017. "Does the age difference between partners influence the career achievements of women?," MPIDR Working Papers WP-2017-008, Max Planck Institute for Demographic Research, Rostock, Germany.
    24. Choi, Youjin & Holm, Anders & Margolis, Rachel, 2019. "The Effects of Paternity Leave on Parents’ Earnings Trajectories and Earnings Inequality," SocArXiv tx2vh, Center for Open Science.

    More about this item

    Keywords

    Parental leave; gender equality; earnings;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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