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Causes and Consequences of a Father’s Child Leave: Evidence from a Reform of Leave Schemes

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  • Helena Skyt Nielsen

    ()
    (School of Economics and Management, University of Aarhus, Denmark)

Abstract

Many OECD countries have implemented policies to induce couples to share parental leave. This paper investigates how responsive intra-household leave-sharing is to changes in economic incentives. To investigate this fundamental question, we are forced to look at one of the Nordic countries which are the most progressive when it comes to family-friendly policies. An extensive reform of child leave schemes in Denmark affected couples differently depending on whether the parents where employed in the same or in different parts of the public sector. Based on a difference-in-differences strategy, I find that economic incentives are very important for intra-household leave-sharing. Increasing the couples’ after tax income by $9 per day of leave which is transferred from the mother to the father is found to lead to a one day transfer. This corresponds to a supply elasticity close to unity.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2009-08.

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Length: 30
Date of creation: 29 Jun 2009
Date of revision:
Handle: RePEc:aah:aarhec:2009-08

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Web page: http://www.econ.au.dk/afn/

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Keywords: fathers; parental leave; child leave;

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References

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  1. Annette Bergemann & Regina Riphahn, 2011. "Female labour supply and parental leave benefits - the causal effect of paying higher transfers for a shorter period of time," Applied Economics Letters, Taylor & Francis Journals, vol. 18(1), pages 17-20.
  2. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2003. "Why the apple doesn't fall far: understanding intergenerational transmission of human capital," CeMMAP working papers CWP16/03, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. James W. Albrecht & Per-Anders Edin & Marianne Sundström & Susan B. Vroman, 1999. "Career Interruptions and Subsequent Earnings: A Reexamination Using Swedish Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 294-311.
  4. Elina Pylkkänen & Nina Smith, 2003. "Career Interruptions Due to Parental Leave: A Comparative Study of Denmark and Sweden," OECD Social, Employment and Migration Working Papers 1, OECD Publishing.
  5. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, . "Does the Gap in Family-Friendly Policies Drive the Family Gap?," Economics Working Papers 2003-1, School of Economics and Management, University of Aarhus.
  6. Ekberg, John & Eriksson, Rickard & Friebel, Guido, 2005. "Parental Leave – A Policy Evaluation of the Swedish "Daddy-Month" Reform," IZA Discussion Papers 1617, Institute for the Study of Labor (IZA).
  7. Wen-Jui Han & Christopher Ruhm & Jane Waldfogel, 2009. "Parental leave policies and parents' employment and leave-taking," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(1), pages 29-54.
  8. Stephen G. Donald & Kevin Lang, 2007. "Inference with Difference-in-Differences and Other Panel Data," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 221-233, May.
  9. Eriksson, Rickard, 2005. "Parental Leave in Sweden: The Effects of the Second Daddy Month," Working Paper Series 9/2005, Swedish Institute for Social Research.
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Cited by:
  1. Zhelyazkova, Nevena, 2013. "Fathers' use of parental leave. What do we know?," MERIT Working Papers 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Olsson, Martin, 2013. "Employment Protection and Parental Child Care," Working Paper Series 952, Research Institute of Industrial Economics.

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