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Can paternity leave reduce the gender earnings gap?

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  • Diallo, Yaya
  • Lange, Fabian
  • Renée, Laetitia

Abstract

This paper examines the impact of paternity leave on the gender gap in labor market outcomes. Utilizing administrative data from Canadian tax records, we analyze the introduction of Quebec's 2006 paternity leave policy, which offers five weeks of paid leave exclusively to fathers. Using mothers and fathers of children born around the reform, we estimate how the policy impacted labor market outcomes up to 10 years following birth. The reform significantly increased fathers' uptake of parental leave and reduced their earnings immediately after the reform. However, in the medium to long-run, we find that the reform did not impact earnings, employment, or the probability of being employed in a high-wage industry for either parent. We for instance find a 95%-CI for the effect on average female earnings 3-10 years following the reform ranging from -2.2 to +1.7%. Estimates of effects on other outcomes and for males are similarly precise zeros. There is likewise no evidence that the reform changed social norms around care-taking and family responsibilities.

Suggested Citation

  • Diallo, Yaya & Lange, Fabian & Renée, Laetitia, 2024. "Can paternity leave reduce the gender earnings gap?," CLEF Working Paper Series 77, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    • Handle: RePEc:zbw:clefwp:304304
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    References listed on IDEAS

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    1. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    2. Ankita Patnaik, 2019. "Reserving Time for Daddy: The Consequences of Fathers’ Quotas," Journal of Labor Economics, University of Chicago Press, vol. 37(4), pages 1009-1059.
    3. Patricia Cortés & Jessica Pan, 2023. "Children and the Remaining Gender Gaps in the Labor Market," Journal of Economic Literature, American Economic Association, vol. 61(4), pages 1359-1409, December.
    4. Druedahl, Jeppe & Ejrnæs, Mette & Jørgensen, Thomas H., 2019. "Earmarked paternity leave and the relative income within couples," Economics Letters, Elsevier, vol. 180(C), pages 85-88.
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    Keywords

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    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

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