Parental leave quotas and workplace spillovers

This paper studies how parental leave quotas may foster a more gender-equal division of parental responsibilities by increasing fathers’ uptake of leave beyond the reserved amount. Specifically, the paper examines whether the introduction and expansion of 30-days parental leave quotas in Sweden generated spillover effects on male coworkers’ leave-taking behavior. Using rich population register data and a regression discontinuity design, I find no evidence that the first quota introduced in 1995 affected male coworkers’ uptake of parental leave. In contrast, the 2002 expansion of the quota led to a statistically significant increase of almost nine additional days of parental leave taken by male coworkers. The increase primarily occurred early in the child’s life. As such, the increased uptake can be expected to contribute to a more equal division of parental responsibilities also in the long run. The absence of spillovers following the initial reform is consistent with the first quota being more distorting in nature and offering limited information about longer parental leave spells. The findings underscore the importance of societal context and policy design in shaping behavioral responses to parental leave reforms.