Male use of parental leave in Luxembourg: Empirical analysis of administrative records
Nevena Zhelyazkova
#2013-045
The study investigates the decisions of fathers to use parental leave at
the individual level. The focus is on the opportunity cost fathers would
face for using the leave. Opportunity cost is measured in two ways: as
the difference between the parental leave benefit and the salary of the
father and as the mean salary growth for a period of six months. The
first measure is a proxy for the direct opportunity cost, while the
second aims to capture opportunity costs of being away from the
workplace in terms of foregone promotion opportunities. Data for the
analysis are based on anonymous administrative records of fathers
working in the Grand Duchy of Luxembourg. The analysis deploys a
duration model to investigate fathers' use of parental leave throughout
an observation period of five years. The results of the study suggest a
negative, although non-linear, relationship between foregone income and
the hazard of taking parental leave. Surprisingly, however, salary
growth in the six-month period prior to taking parental leave has a
positive, rather than a negative effect on the hazard of taking parental
leave.
JEL Classification: J130, J160
Keywords: Parental leave, work-family reconciliation, fatherhood