Benefits of universal, paid parental leave

Challenges to universal, paid leave

Comparison between countries

Comparison between countries in term of employee benefits to leave for parents are often attempted, but these are very difficult to make because of the complexity of types of leave available and because terms such as maternity leave, paternity leave, pre-natal leave, post-natal leave, parental leave, family leave and home-care leave, have different meanings in different jurisdictions. Such terms may often be used incorrectly. Comparing the length of maternity leave (which is common in international rankings) may say very little about the situation of a family in a specific country. A country for example may have a long maternity leave but a short (or non-existent) parental or family leave, or vice versa.^[35][36] In the European Union, each country has its own policies, which vary significantly, but all the EU members must abide by the minimum standards of the Pregnant Workers Directive and Work–Life Balance Directive.^[37]

Sometimes there is a distortion in how maternity leave is reported and delimitated from other types of leave, especially in jurisdictions where there is no clear legal term of "maternity leave", and such term is used informally to denote either the minimum or the maximum period of parental leave reserved by quota to the mother.^[38] Some countries may be listed artificially as having more or less generous benefits. Sweden is sometimes listed in international statistics as having 480 days' "maternity leave",^[39] although these days include parental leave. As such, Sweden is often quoted as having an exceptionally long leave, although there are several countries with significantly longer leave, when maternity leave and other leaves are added, where a parent may take leave until a child is 3 years of age.^[40]

Peer effects

Research has demonstrated that the duration of parental leave among individuals is influenced by peer behaviour.^[41] For example, if a mother notices a coworker opting for a longer parental leave, the probability of her to also increase their maternity leave increases. Welteke and Worhlich (2019)^[41] article found that expectant mother's who had peers taking parental leave of longer than ten months were thirty percent more likely to also take more than ten months off compared to expectant parents whose peers took a shorter leave. The influence of peer effects is not solely present to expectant mothers but also fathers. Research in Norway found that expectant fathers were 11 percent more likely to take paternity leave if they witnessed their coworkers use this benefit.^[42] In addition to coworkers, expectant fathers were 15 percent more likely to use paternity leave if their brother also utilized the program.^[42] Dahl et al., (2014)^[42] research additionally found a snowball effect occurring in workplaces where fathers using paternity leave.This means with every additional coworker utilizing benefits of parental leave in the office, the likelihood of others to also use the program benefits.^[42][43]

There are competing arguments to why peers have an influence to the duration of paternal leave of an expecting parent. The first hypothesis stems from mothers learning from their peers about parental leave programs they were previously unaware of. This increase in awareness would lead to more mothers utilizing parental leave for a longer duration. A competing hypothesis states that when coworkers increase their pregnancy leave, there becomes a change in the social norms of that workplace.^[41] This phenomenon is known as "herd behaviour" in which an alteration of the traditional habits in the workplace shifted the behaviour of the employees.^[43]

Uptake of parental leave for fathers

Several factors influence the uptake of parental leave by expectant fathers. For example, research has found that fathers who had a secondary education were 28% more likely to take parental leave programs longer than fathers who did not receive secondary education. Furthermore, fathers with a tertiary education were 67% more likely to take parental leave of longer than two months than dads with secondary education.^[44]

Additionally, the Income levels of fathers have been noted to influence the uptake of fathers' parental leave. Low-income fathers are less likely to use parental leave, and if they did take off time, it is shorter in duration than fathers with higher income.^[44] The discrepancies between the two demographics may be due to fathers with lower incomes being restricted by a more unstable labour market. Fathers in different-sex relationships are even less likely to use parental leave if the mother has a low income.^[44] The mother's low income positively correlates with the father taking little to no parental leave. This may be due to the father wanting the mother to take a longer leave themselves or other factors such as the pressures to provide for the household economically.^[45]

Research in Sweden found that foreign-born fathers are less likely to partake in parental programs than native-born fathers.^[44] The authors have theorized that this result might reflect greater instability of labour markets for first-generation migrants. Additionally, there is a greater likelihood for first-generation immigrants to lack access to information concerning parental leave can contribute to the decrease in uptake from this demographic.

Another aspect that influences the uptake of parental leave is gender dynamics at home and work.^[45] In households with a positive association between fatherhood involvement and egalitarian values, the father utilization of parental leave is increased. Workplace environments that promote parental leave for fathers as essential create a greater likelihood of these dads taking parental leave for a longer duration. In contrast, a workplace culture that views paternal leave as an indicator of poor work habits and as "feminine" causes fathers in that environment to be less likely to participate in parental leave.^[45] In Australia it has been argued, by Georgie Dent, that the uptake of parental leave by fathers could enable the workforce participation of women, leading to improved economic outcomes for families as well as the Nation.

Eligibility and uptake of parental leave for mothers

The eligibility and uptake of parental leave programs are not consistent among all demographics of expecting mothers. In most European countries, parental leave is granted to parents, usually after maternity and paternity leave. In some countries, parental leave has more restrictive requirements than maternity leave or paternity leave. Research by Marynissen, Wood and Neels (2021)^[46] found that 26.37% of mothers in Belgium are not eligible for parental leave. This is due to the employment-based eligibility criteria present with the country's parental leave program (although unemployed women receive maternity leave).^[47] By utilizing an employment-based measure, scholars have noted that this creates barriers for currently unemployed mothers to receive an opportunity to take more time off looking for a job and care for their child.^[48] Another limitation present with employment-based criteria is that in some countries self-employed individuals are not eligible for certain parental benefits.^[48] For example, in Belgium, a self-employed woman receives a maternity leave that is shorter and lower paid than an employed woman; and does not receive parental leave.^[49] There are also a certain number of hours an employee must meet before being eligible for employment-based parental leave.^[50] These various factors limit access to parental care for expecting mothers. Expecting parents who are the most affected by these criteria are usually younger, single, less educated or from migrant backgrounds.^[46]

In addition to discrepancies present in eligibility, there is variation among expecting mothers who utilize parental leave benefits. For example, research performed by Kil, Wood and Neels(2018)^[51] found that native-born Belgian women had higher uptake of parental programs (52%) in comparison to first-generation Belgian citizens from Turkey and Morocco, whose uptake was relatively low (34%). The difference in uptake can be attributed to factors such as the flexibility of the parental leave, culture of the workplace, cultural ideals of paid leave, not knowing about the program itself and other normative factors that influenced the utilization of paid leave.^[46]

Research has found that mothers in same-sex relationships are less likely to uptake parental leave than mothers in different-sex relationships.^[52] Evertsson and Boye (2018)^[52] found that birth mothers in same-sex relationships, on average, took seven weeks less parental leave than birth mothers in different-sex relationships. The authors reference that gender norms result in the difference between parental uptake duration between birth mothers in same-sex relationships compared to different-sex relationships.^[52]

Eligibility of parental leave for same sex couples

Eligibility of parental leave for same sex couples depends on numerous factors: on adoption policies (on whether or not same-sex couples can adopt jointly or not; on whether a single parent is allowed to adopt or not - and if yes, whether the second parent can subsequently adopt - and on surrogacy laws). According to a study that examined policies in 34 OECD countries, in nineteen of these countries, same sex female couples received the same amount of parental leave benefits as different sex couples.^[53] For same-sex male couples, four countries provided the same duration of parental leave as different sex couples. Therefore, twenty-nine OECD countries provided a shorter period of parental leave and fewer benefits for same-sex male parents. In addition, some countries, such as Turkey and Israel, provided no parental leave benefits or paid leave for the expectant male parents.^[53]

The reason for discrepancies in parental leave between same-sex and different-sex couples is theorized to have several different explanations, usually related to who can be a legal parent. One factor affecting parental leave duration for same-sex couples is the restrictive language found in parental leave policies. The study found that some parental leave policies only referred to heterosexual couples and did not include same-sex couples in the legislation, leading to increased barriers for same-sex parents to receive paid leave. Another significant barrier comes when same-sex couples try adopting their child. In 15 of the 34 OECD countries examined, same sex couples cannot legally adopt a child together. In these countries, same-sex couples may have one person in the relationship adopt their child as a single parent.^[53] Only one parent will be provided parental or adoption-related leave through this adoption strategy. While there is an option of second-parent adoption in some of these 15 countries, the process of a second adoption is costly and time-consuming- creating potential barriers that restrict the same-sex couple from pursuing this procedure. In some countries, same-sex parents can only be formed through a birth mother in a lesbian relation (considered legally a single mother), so the second mother does not receive leave.^[54]

On the labor market

A study in Germany found that wages decreased by 18 percent for every year an employee spends on parental leave.^[56] However, after the initial decrease in wages, the employee's salary rebounds faster than the salary of someone not offered parental leave.^[56] A study of California's leave policy, the first state in the U.S. to require employers to offer paid parental leave, showed that wages did increase.^[57]

Parental leave can lead to greater job security.^[56] Studies differ in how this helps return to work after taking time off. Some studies show that if a parent is gone for more than a year after the birth of a child, it decreases the possibility that he or she will return.^[56] Other studies of shorter leave periods show that parents no longer need to quit their jobs in order to care for their children, so employment return increases.^[57]

It does not appear that parental leave policies have had a significant effect on the gender wage gap, which has remained relatively steady since the late 1980s, despite increasing adoption of parental leave policies.^[58]

On health and development

According to a 2020 study, parental leave leads to better health outcomes for children.^[9] A Harvard report cited research showing paid maternity leave "facilitates breastfeeding and reduces risk of infection"^[55] but is not associated with changes in immunization rate.^[75] This research also found that countries with parental leave had lower infant mortality rates.^[55] Returning to work within 12 weeks was also associated with fewer regular medical checkups.^[76] Data from 16 European countries during the period 1969–1994 revealed that the decrease of infant mortality rates varied based on length of leave. A 10-week leave was associated with a 1–2% decrease; a 20-week leave with 2–4%; and 30 weeks with 7–9%.^[77] The United States, which does not have a paid parental leave law, ranked 56th in the world in 2014 in terms of infant mortality rates, with 6.17 deaths per every 1,000 children born.^[78] The research did not find any infant health benefits in countries with unpaid parental leave. Paid leave, particularly when available prior to childbirth, had a significant effect on birth weight. The frequency of low birth rate decreases under these policies, which likely contributes to the decrease in infant mortality rates as low birth weight is strongly correlated with infant death. However, careful analysis reveals that increased birth weight is not the sole reason for the decreased mortality rate.^[75]

A 2021 study found that the introduction of paid maternity leave in Norway substantially improved maternal health outcomes, in particular for first-time and low-income mothers.^[10]

According to a 2016 study, the expansion of government-funded maternity leave in Norway from 18 to 35 weeks had little effect on children's schooling.^[64] However, when infants bond and have their needs met quickly by caregivers (mothers, fathers, etc.) they will become confident and be prepared to have healthy relationships throughout their life.^[79]

Children whose mothers worked in the first 9 months were found to be less ready for school at the age of 3 years. The effects of mothers' employment appeared to be the most detrimental when employment started between the sixth and ninth month of life. The reasons for this were uncertain, but there is conjecture that there was something unusual for the group of mothers who returned to work in this time period as they represented only 5% of all families studied. Negative impacts in terms of school-readiness were most pronounced when the mother worked at least 30 hours per week. These findings were complicated by many factors, including race, poverty, and how sensitive the mother was considered. The effects were also greater in boys, which is explained by the fact that many analysts consider boys more vulnerable to stress in early life.^[80]

The same Harvard report also linked paid parental leave and a child's psychological health. It found that parents with paid parental leave had closer bonds with their children.^[55] Based on research of heterosexual couples, better immersion of the father in the process of raising a child can lead to improved development outcomes for the child and a better relationship between the parents.^[81] In recent years, various OECD countries drew attention to the topic, especially to the time of the parental leave taken by fathers, and concluded that short-term paternal leaves still lead to positive outcomes for the child's development. Families do take into account relative income levels of each parent when planning for parental leave; the partner earning a lower wage may be more likely to take parental leave.^[82] There is also often workplace pressure on men not to take paternity leave, or to take less than the maximum time allowed. To counteract these pressures and encourage paternity leave, some countries have experimented with making paternity leave mandatory or otherwise incentivizing it.^[22]

There are also observable improvements in the mental health of mothers when they are able to return to work later. While the probability of experiencing postpartum depression had no significant statistical change, longer leave (leave over 10 weeks) was associated with decreased severity of depression and decreased number of experienced symptoms. This reduction was, on average, between 5% and 10%.^[83]

Studies looking for a connection between paid parental leave have shown conflicting results. Some research looked at women 25–34 years old, who are more likely to be affected by leave legislation. Fertility rates peaked for those between 25–29 and 30–34 across European countries.^[56] Conversely, however, research in Spain found that after the introduction of two weeks of paid paternity leave, fertility rates fell suggesting that, when fathers are more engaged in raising children, they may become more aware of the challenges; their priorities may shift to quality over quantity of children; or that mothers are better able to remain connected to the workforce.^[84]

A study of a 2012 law in Sweden that allowed fathers to take up to 30 days of paid family leave in the first year after the birth of the child at the same time as the mother was on leave led to substantial improvements in the mental and physical health of mothers.^[85][86]

On economy

The economic consequences of parental leave policies are subject to controversy. According to a 2016 study, the expansion of government-funded maternity leave in Norway from 18 to 35 weeks had net costs that amounted to 0.25% of GDP, negative redistribution properties and implied a considerable increase in taxes at a cost to economic efficiency.^[64] In the U.S., paid family leave tends to lead to a higher employee retention rate and higher incomes for families.^[5] Evidence from selected countries in Western Europe suggests that moderate levels of parental leave can encourage mothers to reenter the work force after having children, promoting national economic development.^[87]

On gender equality

Parental leave policies have an impact on gender equality as it relates to parenting and are therefore used by various countries as a tool to promote gender equality.^[88][89] Many countries have implemented paid parental leave policies for both parents, while a minority of countries, like the United States, only have unpaid parental leave. A father's quota, which reserves a part of the leave period exclusively for the father, is sometimes assumed to promote gender equality, although the extent and effects are subject to debate.^{[90][91][92][93]}

As more women have joined the formal labor force, the lack of men's participation in parenting has been called out as a key example of gender inequality. Various studies highlight the importance of egalitarian parental leave policies in achieving equal distribution of childcare between parents.^[94] Moreover, when discussing parental leave policies, the focus is often on comparing improvements in maternity leave policies to what was available in the past, rather than comparing the impact of diverse policies around the world that distribute parental leave differently between both parents.^[95]

Statistics show a positive correlation between maternity leave policies and women's employment, but the causation relationship cannot be firmly established.^[95] While many believe that maternity leave policies encourage women's participation in the labor force, Anita Nyberg suggests that it is the other way around: that development of maternity leave policies was a response to women's participation in the labor force.^[96]

Economist Christopher Ruhm argues that men's involvement in childcare at the same level as women is essential for eliminating differences in gender roles. Thus, an increase in the use of parental leave by women (and lack thereof by men) will have a negative impact on gender equality. Inversely, an increase in the use of leave by men will have a positive impact.^[95] Transferable leave policies appear to be fair and equal in theory, since they do not specifically allocate leave focused on childcare to women and even allow the family to choose. In practice, however, it leads to the majority of available parental leave being used by women.^[97] The Norwegian Association for Women's Rights, summarizing different studies, states that there is only limited evidence to support a relationship between the father's quota and gender equality; the few relevant studies point in different directions;^[90] the association's former president, psychologist and former Chairman of UNICEF Torild Skard, argues that psychological research does not support the assertion that mothers can be replaced by fathers in the first year.^[91] A Norwegian study from 2018 found that an extension of the father's quota had no effect on gender equality.^[92][93]

Through examination of leave policies in twenty-one European countries by describing the existing policy schemes' duration, payment, and transferability, Carmen Castro-Garcia created the Parental Leave Equality Index (PLEI), which can predict the participation of each parent in raising their children based on their gender and the existing policy regarding parental leave.^[95] His model shows that a policy that provides equal, nontransferable, and well-paid leave for each parent (which no country has at the moment) will best encourage men's and women's equal participation in childcare.^[95]

On relationships

A 2020 study in the Economic Journal found that reforms in Iceland that incentivized fathers to take parental leave reduced the likelihood of parents separating. The strongest impact was on relationships where the mother was more educated than or equally educated as the father.^[146]

Africa

Americas

Asia

Europe and Central Asia

Oceania

Luxembourg

Parents in Luxembourg are entitled to parental leave for both childbirth and adoption. When the mother gives birth, regardless of whether she is an employee, self-employed or an apprentice, she is entitled to pre-natal maternity leave of 8 weeks before the expected due date and 12 weeks' post-natal leave.^[241] The father, meanwhile, gets 10 days' leave after the birth, which must be taken within 2 months of the child's birth.^[241] For adoptions, one of parents can take up to 12 weeks' leave if the adopted child is under the age of 12.^[241] Luxembourg provides a fixed compensation rate during parental leave, which is €1,778, while most of the other European countries get compensation as a percentage of the salary.^[242] Luxembourg doesn't have a policy for maternity allowance in place or in addition to the maternity leave pay.^[243] Maternity allowance means the money paid during pregnancy or just after child birth.^[243] According 2013 OECD data, public expenditure on maternal and paternal leaves on per child born was the most in Luxembourg out of almost all the European counties at the 35,000 at prices and PPPs of 2013 in USD.^[243]

On 1 December 2016, "family leave reform bill 7060" was passed in the Luxembourg parliament.^[244] According to this new reform, now fathers and mothers can take leave together.^[245] The first leave has to be taken right after maternity leave and the second can be taken before the child turns 6 years old.^[245] This new reform provides much more flexibility. The parent has four options: either they can take 4 to 6 months' full leave, 8 to 12 months' part-time leave, take one day off per week for 20 months or can take 4 individual months within 20 months.^[245] The official Luxembourg government portal suggests that according to the data collected more than 85% of the parents are extremely happy with this new reform and 79% people think that this new system is better than the older system.^[246]

France

In France, there is maternity leave, paternity/partner leave and parental leave. The maternity leave, the number of weeks a biological mother is allowed to leave work is 16 weeks in France—6 weeks before birth and 10 weeks post-birth.^[247] Maternity leave is 26 weeks for the third and subsequent children, and 34 weeks for twins. Maternity leave is mandatory, the mother must take at least part of the leave, complete renouncement of the leave is forbidden.^[248] Paternity/partner leave is 25 days.^[249] Parental leave in France (Congé Parental) refers to the system of leave that is guaranteed to both fathers and mothers in cases of either childbirth or adoption, and can be taken for up to three years. In France, there are differences regarding the regulation on parental leave, based on number of children, how it is shared between parents, payment, and type of job. Payment varies between six months and three years.^[250]

India

Maternity leave in India is 26 weeks (8 prenatal and 18 postnatal) and is paid at 100% rate of the employee’s salary. India's maternity leave policy is regulated by The Code on Social Security, 2020.^[251] The employee must have worked in the company for at least 80 working days before availing this benefit and the woman would also be entitled to a medical bonus alongside the 100% paid leave. For women with already two children, the maternity leave reduces to 12 weeks.^[252] Only employees of state-owned enterprises and civil servants are entitled to paternity leave which is two weeks, while women civil servants are entitled to one year worth of parental leave, including the maternity leave.^[252]

Germany

Maternity leave in Germany is 14 weeks (6 prenatal and 8 postnatal), and parental leave is 3 years. Parents in Germany can request up to 3 years parental leave, which is partly paid with parental allowance. Parental leave can be taken immediately after maternity leave (the weeks of maternity leave after birth are included in the duration of the parental leave) or immediately after birth (for fathers) or it may be taken at later times. Parental leave can be taken all in a go, or in a fractioned way. It can be taken all before the child's 3rd birthday, or it may be extended until the 8th birthday; however at least one year must be taken before the third birthday (otherwise that year is lost). All parents who have legal parental rights are entitled to parental leave (including non-biological and same-sex). Parental allowance is paid during part of the parental leave; the amount and duration of payment has changed several times throughout the years. It is possible to be on parental leave and work a limited amount of hours, without losing the parental leave benefits. The advantage of working while on parental leave is that vacation (annual leave) continues to accrue, if one does not work at all on parental leave, that person's vacation leave entitlement reduces by one twelfth for each month during which one is taking parental leave (i.e. after a full year of parental leave the vacation entitlement for next year has been lost, unless there are remainder vacation days which had been accumulated before the parental leave, or unless the employer agrees otherwise). Parental leave is job protected, the employee has the right to return to the same job, or in certain situations, to a different position that is similar to the previous one.^[253]

Canada

Canada has two parental leave benefit programs for the care of a newborn or adopted child: a federal program, and provincial programs.^[254] Every Canadian province offers at least seventeen weeks of maternity leave, with the exception of Alberta - where maternity leave is fifteen weeks long.^[255] The eligibility for maternity leave is that the individual has to be the child's birth mother (including surrogate mother).^[256] There have to be at least 15 weeks leave (maternity leave can start up to 12 weeks before birth).^[256] In addition to maternity leave, there is parental leave, the length of which depends on payment: there is an option between standard parental leave up to 40 weeks (but one parent cannot receive more than 35 weeks) which is paid at the rate of 55% up to $638 weekly; and extended parental leave up to 69 weeks (but one parent cannot receive more than 61 weeks) which is paid at the rate of 33% up to $383.^[257]

Due to parental leave being under provincial jurisdiction, there is a decentralized nature to the policies concerning leave benefit programs. For example, the province of Quebec has some of the greatest maternity leave benefits in the country.^[258] In Quebec, a greater number of people are eligible for parental leave benefits and there are more benefits they can receive, compared to other provinces.^[254] The variety among provinces concerning parental leave has raised debates on whether there should be a unitary federal program for parental leave policies in Canada.^[254]

United Kingdom (parental bereavement leave)

Statutory Parental Bereavement Leave is available under UK legislation ^[259] to the parents of a child who dies under the age of 18, or where a child is stillborn after 24 weeks of pregnancy.^[260] In Northern Ireland this entitlement was provided for in the Parental Bereavement (Leave and Pay) Act (Northern Ireland) 2022.^[261]