Can parental leave be shared?

Overview & Synopsis

We examine the consequences of recent policies promoting parental leave sharing using a 2015 French reform. The reform reduced the duration of mothers’ paid leave to give 12 months of non transferable leave to fathers. Leave can be taken while working part-time for up to 80% of standard working hours, which can be a more attractive option for fathers. We find that the take-up rates for fathers remained low, as less than 3% of fathers took any form of leave after the reform. Surprisingly, we also find low take-up rates for fathers working part-time after the reform and for whom taking paid part-time leave would have increased their median income by 15% without requiring them to change in their labour supply. For fathers working part-time, non-take-up rates of part-time leave benefits are as high as 81% compared with less than 25% for mothers. The reform dramatically increased the annual earnings of mothers, but it had no effect on the earnings of fathers.