Gender Gaps: International Evidence on the Role of Family Policy

We use Luxembourg Income Study and International Social Survey Programme microdata on 27 countries over the 1986-2019 period, augmented by policy and labor market information, to estimate the impact of family-friendly policies on gender gaps in employment, wages, earnings, and part-time work, as well as child penalties in employment and earnings. We find that longer duration of parental leave generally lowers gender gaps in wages, employment, earnings, and child penalties in employment and earnings, except for high levels of this entitlement, where further increases in leave raise gender gaps. We also find that the right to request a part-time work schedule raises relative female part-time employment but lowers employment and earnings gender gaps. Higher government expenditures for childcare lower employment, earnings, and part-time employment gender gaps as well as child employment and earnings penalties. These results are generally stronger for the less educated than for the highly educated, possibly reflecting higher costs of taking time off for highly educated women. Finally, expansion of family-friendly policies over this period can account for 24-33% of our sample’s reduction in gender gaps in employment and earnings and 46-76% of the reduction in child penalties in these outcomes. The slower expansion of such policies in the United States than elsewhere accounts for 6-15% of the slower reduction in US gender employment and earnings gaps and 20% of the slower fall in the US child employment penalty.