The Effects of Paternity Leave on Fertility and Labor Market Outcomes

48 Pages Posted: 10 Jul 2017

See all articles by Lidia Farré

Lidia Farré

Spanish Council for Scientific Research (CSIC) - Institute for Economic Analysis; Universidad de Alicante

Libertad Gonzalez

Universitat Pompeu Fabra; Barcelona Graduate School of Economics (Barcelona GSE); IZA Institute of Labor Economics

Abstract

This paper studies the effects of a father quota in the parental leave period on households' labor market and fertility decisions. Identification is based on the 2007 reform of the Spanish family benefit system, which extended the sixteen weeks of paid parental leave by two additional weeks exclusively reserved for fathers and non-transferable to mothers.Using a regression discontinuity design, we show that the reform substantially increased the take-up rate of fathers (by as much as 400%), as well as the re-employment probability of mothers shortly after childbirth (by about 11%). However, it did not affect parents' longer-term leave-taking or employment behavior. We also find that the introduction of the two weeks of paternity leave delayed higher-order births and reduced subsequent fertility among older women (by about 15%). These results suggest a limited scope for the father quota to alter household behaviors beyond the parental leave period and reduce gender inequality at the workplace.

Keywords: natural experiment, paternity leave, fertility, labor market and gender

JEL Classification: J48, J13, J16

Suggested Citation

Farré, Lidia and Gonzalez, Libertad, The Effects of Paternity Leave on Fertility and Labor Market Outcomes. IZA Discussion Paper No. 10865, Available at SSRN: https://ssrn.com/abstract=2998974

Lidia Farré (Contact Author)

Spanish Council for Scientific Research (CSIC) - Institute for Economic Analysis ( email )

UAB Campus
E-08193 Bellaterra
Spain

Universidad de Alicante ( email )

Campus de San Vicente
Carretera San Vicente del Raspeig
San Vicente del Raspeig, Alicante 03690
Spain

Libertad Gonzalez

Universitat Pompeu Fabra ( email )

Ramon Trias Fargas 25-27
Barcelona, 08005
Spain

Barcelona Graduate School of Economics (Barcelona GSE)

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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