Leave and Let Leave: Workplace Peer Effects in Fathers’ Take-up of Parental Leave

Relying on a reform that increased parental leave generosity, we estimate workplace peer effects in the use of leave, with a focus on fathers. Coworker fathers are more likely to take parental leave when exposed to a higher share of peer fathers, who are exogenously affected by the reform. This effect is stronger in larger establishments, those with higher levels of social capital and higher use of parental leave before the reform. We also document that own-gender peer effects are larger than cross-gender influences, and show the absence of career costs for fathers exposed to the reform, which provides an explanation for our findings. Peer effects extend to coworker fathers' partners, who experience an increase in earnings and labor supply. Peer effects are observed also for mothers, but the response of their partners is less pronounced.