The Effect Of Long Parental Leave On Gender Income Inequality

Are long parental leave policies across the EU unintentionally widening the gender pay gap? Our latest policy brief, written by Šárka Neumannová and supervised by Glyre Faeldonia, examines how extended leave durations affect women's labor market detachment, long-term earnings, and career progression.

Key Insights from the Research:

• The Hidden Cost of Extended Leave: Extended periods away from work lead to skill depreciation and employer discrimination, penalizing mothers when they re-enter the labor market.

  
  

• Empirical Link to Wage Gaps: Quantitative analysis of EU member states reveals a statistically significant positive relationship between longer parental leave duration and wider gender wage gaps.

  
  

• Comparative Case Evidence: Evidence from Czechia shows how extended leave up to four years without early childcare drives a high gender pay gap. Conversely, Belgium's shorter leave model and Sweden's balanced system with dedicated father's quotas mitigate labor market detachment.

  
  

• Early Childcare Access: Universal, affordable public childcare for children under three is critical to preventing long-term workforce detachment and supporting mothers' early return to work.

  
  

• Strategic Policy Recommendations: The brief outlines targeted EU actions: setting an optimal EU-wide leave duration benchmark, mandating non-transferable gender-balanced quotas, expanding childcare access, and conditioning EU funding on gender equality outcomes.

At HDRI, we aim to highlight evidence-based structural reforms that balance family support with true economic equality for women. This research offers essential guidance for European policymakers, economic institutions, and advocacy organizations navigating this policy trade-off.

Read the Full Policy Brief:

We invite European policymakers, labor economists, and gender equality advocates to explore our findings and join the effort to advance equitable family policy across the EU!