Margherita Agnoletto (University of Turin and Collegio Carlo Alberto)
The presence of children in households amplifies gender differences in labour market outcomes, disproportionately affecting women. Paternal leave policies are designed to mitigate these disparities by increasing leave-taking by fathers following childbirth. I explore the effects of paternity leave on fathers leave-taking behaviours and time allocation to family responsibilities, exploiting the exogenous variation arising from Australias Dad or Partner Pay (DaPP) policy, which provides fathers with two weeks of paid leave. Despite fathers taking up paternity leave, it does not lead to a corresponding increase in time spent on childcare or housework. This effect can be attributed to a reduction in the use of annual leave, suggesting a substitution effect where fathers choose paid paternity leave over annual leave, which can otherwise be cashed out. Rather than changing overall leave preferences, this shift appears to be financially motivated. Moreover, I find that paternity leave uptake varies according to gender role attitudes. Progressive fathers are more likely to take paternity leave than their conservative counterparts, regardless of their wages. Some spillover effects on maternal labour market outcomes are also discussed. These findings underline the importance of designing policies that address gender norms alongside financial incentives to promote gender equity effectively.