Intra-Household Allocation of Parental Leave

Gobbi, Paula Eugenia;Parys, Juliane;Schwerhoff, Gregor
(2017) Canadian Journal of Economics — Vol. 51, n° 1, p. 236-274 (2018)

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Authors
  • Gobbi, Paula EugeniaUCLouvain
    Author
  • Parys, JulianeDeutsche Post DHL Group
    Author
  • Schwerhoff, GregorMercator Research Institute
    Author
Abstract
We introduce childcare sharing in a collective model of household behavior to investigate which factors make spouses increase or decrease their share of parental leave. The concern about future consumption motivates parents to invest in their human capital and to limit their leave duration. Using relative income and the age difference between spouses as distribution factors, we cannot reject Pareto effciency in childcare sharing. Higher relative incomes and larger age differences shift the conditional leave allocation towards the relatively poorer and younger partner, respectively. Households with higher total income purchase more professional childcare.
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Gobbi, P. E., Parys, J., & Schwerhoff, G. (2017). Intra-Household Allocation of Parental Leave. Canadian Journal of Economics, 51(1), 236-274. https://hdl.handle.net/2078.5/179325 (Original work published 2018)