Time and money: parental leave generosity and first-time parents’ uptake of leave across 23 European countries

As couples transition into parenthood, they face many decisions regarding the division of paid and unpaid labor. A key factor in navigating these divisions is whether – and for how long – each partner takes paid parental leave. Previous studies have shown that more generous leave policies lead, in general, to more uptake of leave, but little data exists on the association between leave generosity at the household level. This study assesses the association between paid parental leave generosity on the leave-taking behavior of new parents across 23 European countries, using data from the 2018 European Union Labor Force Survey. I examine how the two key leave policy levers, time (the number of job-protected weeks available) and money (the wage-replacement rate paid), influence whether first-time parents take leave and for how long, and whether these results differ across income groups. Using multilevel regression analysis on a sample of n = 16,161 couples, I assess the association between time, money, and a measure account for both together. Results indicate a positive relationship between generosity and uptake among both mothers and fathers, but with outcomes twice as large for fathers. I also find differences in results across income groups. The findings highlight the role of paid parental leave in promoting gender equality in household labor division, and the need. The study suggests that enhancing leave policies, especially for fathers, could encourage a more equitable sharing of parental leave and, consequently, the division of paid and unpaid labor.