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Paternity leave isn’t closing the gender pay gap

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Wider initiatives are needed to change social norms regarding caregiving responsibilities

A significant portion of the gender earnings gap can be traced back to a key life event: the birth of the first child. Research consistently shows that women, but not men, experience a sharp and lasting decline in earnings after becoming parents. This “child penalty” occurs because mothers tend to take on the bulk of childcare responsibilities. As a result, they reduce their working hours, put their careers on hold, and face persistent wage gaps that can take years—or even decades—to close.

To address this imbalance, many countries have introduced policies designed to encourage fathers to take a more active role in childcare. One such policy, known as the “daddy quota,” reserves a portion of paid parental leave exclusively for fathers (also referred to as paternity leave). The goal is that by taking several weeks of leave, fathers not only support their partners during the critical early months of a child’s life but also establish long-term caregiving habits. In turn, mothers can maintain stronger ties to the workforce and continue advancing their careers, ultimately reducing the gender pay gap.

This approach has gained popularity in Nordic countries and has now been adopted in many places worldwide, with “daddy quotas” ranging from two weeks to several months. In Quebec, Canada, a well-known reform in 2006 introduced five weeks of paid paternity leave for fathers. Initial studies suggested that this reform had the potential to improve mothers’ labor market outcomes. However, as more comprehensive data becomes available, the outlook appears less promising.

In a recent study, we reassessed the impact of the Quebec reform using administrative tax records. To measure its effects, we compared parents who had a child just before the reform was implemented with those who had a child just after, assuming that the exact timing of childbirth was effectively random within a short timeframe.

Our findings challenge the idea that paternity leave significantly reduces the gender earnings gap. While the policy did lead to a substantial increase in fathers taking leave—from 20% to 60%—it did not result in significant long-term changes in earnings for either mothers or fathers over the following ten years.

To understand why the policy did not have the expected impact, we explored whether it influenced social norms around caregiving. Using administrative data, we examined indicators such as fathers’ involvement in child custody after separation, their use of parental leave for subsequent children and changes in separation or birth rates. Our results show no meaningful changes in these areas, suggesting that the reform did not alter traditional childcare norms in a lasting way.

There are several possible reasons why paternity leave may not have had the intended effect. A few weeks of paternity leave may not be enough to change deeply ingrained societal norms about caregiving roles. Fathers may resume traditional work patterns once their leave ends, while mothers continue to bear the primary childcare burden. Additionally, evidence from Norway suggests that many fathers take their paternity leave weeks not immediately after birth but during summer vacations—often when children are already enrolled in formal childcare. This implies that, in some cases, fathers may not be using their leave primarily to provide hands-on care.

While increasing paternity leave uptake is a step toward greater gender equality, the evidence from Quebec suggests that it is not, on its own, enough to close the gender earnings gap. If the goal is to create more balanced caregiving roles, policymakers may need to consider more comprehensive measures—such as longer leave periods for fathers, incentives for shared parental leave, or broader efforts to shift social norms around caregiving responsibilities.

© Yaya Diallo, Fabian Lange, and Laetitia Renée

Yaya Diallo is PhD Candidate at McGill University, Canada
Fabian Lange is Director of the Industrial Relations program at McGill University, Canada
Laetitia Renée is Assistant Professor of Economics at the Université de Montréal
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We recognize that IZA World of Labor articles may prompt discussion and possibly controversy. Opinion pieces, such as the one above, capture ideas and debates concisely, and anchor them with real-world examples. Opinions stated here do not necessarily reflect those of the IZA.

Related IZA World of Labor content:
https://wol.iza.org/articles/parental-leave-and-maternal-labor-supply by Astrid Kunze
https://wol.iza.org/articles/maternity-leave-versus-early-childcare-what-are-the-long-term-consequences-for-children by Nabanita Datta Gupta Jonas Jessen
https://wol.iza.org/articles/motherhood-wage-penalty-may-affect-pronatalist-policies by Olena Y. Nizalova

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