Additional parental leave most popular among middle-income groups

For their study, Van de Kraats and Deng linked administrative data from the UWV with data of Statistics Netherlands (CBS). They focused on additional parental leave, a scheme that since July 2020 has entitled parents whose partner has given birth to five weeks of paid leave in the first six months after the birth of a child.

Income plays an important role

The analysis shows that take-up of additional parental leave is strongly related to income. Participation is particularly low among the lowest income groups. As income rises, so does the use of the leave scheme. However, take-up declines again among the highest income groups. 

According to Van de Kraats and Deng, this pattern supports the idea that financial considerations play an important role in the decision to take leave. During additional parental leave, employees receive an UWV allowance of 70 per cent of their daily wage, up to a maximum of 70 per cent of the statutory maximum daily wage. For low-income employees, the temporary loss of income may present a significant barrier. At the top end of the income distribution, the cap on benefits may also play a role, meaning the relative income loss can again become substantial. The researchers emphasise, however, that no definitive conclusions can yet be drawn, as data on possible employer top-ups of the UWV allowance are not available.

Risk of greater inequality

The findings, which have also been published in a contribution to the Dutch economics journal ESB, are relevant to the wider public debate on the division of paid work and caring responsibilities between men and women. Parental leave schemes are intended to contribute to reducing the economic disadvantage of women after childbirth, a more equal sharing of care responsibilities, and a greater involvement of fathers. However, Van de Kraats and Deng warn that these objectives may not be achieved equally across all groups. If access to paid leave depends in part on income, there is a risk that policies designed to reduce gender inequality could instead create new disparities between income groups. Middle-income households would then benefit most from the scheme, while lower-income families would fall behind in their ability to spend time with their newborn child.

Further research needed

The researchers note that income is not the only possible explanation for differences in take-up. Social norms, preferences, workplace culture, and the complexity of the leave system may also play a role. They therefore conclude that further research is needed into the causes of differences in leave uptake, and into whether recent expansions of parental leave schemes genuinely contribute to policy goals of greater gender equality, a more balanced division of labour within households, and increased paternal involvement in childcare.