Intra-Household Allocation of Parental Leave

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Gobbi, Paula Eugenia ; Parys, Juliane ; Schwerhoff, Gregor (2015)
  • Subject: Childcare sharing | parental leave | collective model | sharing rule | gender

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 efficiency 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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