Who uses the possibility of longer parental leave? Short answer: Mothers!

But why is that?
In this working paper, I show that gender norms rather than standard economic incentives explain how couples decide who spends time on child-rearing. [1/8]
Link: https://annesophielassen.github.io/pages/working_papers/WP_GenderNorms_Lassen.pdf
I use Danish admin data to evaluate a reform which i) improved parental leave opportunities and ii) removed earmarked leave allocated to fathers.

Policy-makers wanted couples to decide on their own, but which factors then influence the time-allocation? [2/8]
Standard models of specialization predict that relative earnings influence the decision, regardless of sex.
However, theories inspired by sociology and feminist theory suggest that gender norms influence the decision, so mothers will be the users of extended leave. [3/8]
I implement an RD-design to compare leave behavior in couples with a children born before and after the reform. Women increase their leave by 5 weeks, while fathers on average do not respond. Relative earnings of the couple barely influence this. [4/8]
With the reform, the variance of mothers’ leave duration falls. This is due to a larger reform response in groups that prior to the reform took shorter leave.
For example, women in the private sector increase their leave more than women in the public sector. [5/8]
To investigate the long-term effect, I estimate peer effects. For this, I identify sisters of mothers in the reform window. These women only differ in terms of the leave scheme under which their niece/nephew was born. [6/8]
The reform-induced change in behavior implies that those with a sister in the reform control group observe other behavioral norms than those with a sister in the reform treatment group. When they get a child themselves, they behave accordingly. I find peer effects of 17 %. [7/8]
Combined, the results show that the reform reinforced gender gaps in time-allocation and that the relevant mechanism is gender norms. This is important for understanding gender gaps and for the design of family policies. Explicitly including men could reduce these gaps. [8/8]
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