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

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Author Info
Nielsen, Helena Skyt () (University of Aarhus)

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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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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4267.

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Length: 32 pages
Date of creation: Jun 2009
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Handle: RePEc:iza:izadps:dp4267

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Related research
Keywords: fathers; parental leave; child leave;

Other versions of this item:

Find related papers by JEL classification:
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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References listed on IDEAS
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  1. John Ekberg & Rickard Eriksson & Guido Friebel, 2005. "Parental Leave - A Policy Evaluation of the Swedish "Daddy-Month" Reform," IZA Discussion Papers 1617, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Helena Skyt Nielsen & Marianne Simonsen & Mette Verner, 2004. "Does the Gap in Family-friendly Policies Drive the Family Gap?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 106(4), pages 721-744, December. [Downloadable!] (restricted)
    Other versions:
  3. 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, 03. [Downloadable!] (restricted)
  4. Annette Bergemann & Regina T. Riphahn, 2009. "Female Labor Supply and Parental Leave Benefits: The Causal Effect of Paying Higher Transfers for a Shorter Period of Time," SOEPpapers 161, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  5. 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, Directorate for Employment, Labour and Social Affairs. [Downloadable!]
    Other versions:
  6. Eriksson, Rickard, 2005. "Parental Leave in Sweden: The Effects of the Second Daddy Month," Working Paper Series 9/2005, Swedish Institute for Social Research. [Downloadable!]
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This page was last updated on 2009-11-30.

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