Libertad González, Universitat Pompeu Fabra : Paternity Leave and Statistical Discrimination

Title:   Paternity Leave and Statistical Discrimination: Evidence from Spanish Firms

Abstract: Gender gaps in labor market outcomes remain a persistent feature of modern economies. Statistical discrimination, driven by employers' expectations about gender-specific labor supply patterns (e.g., related to childcare responsibilities), can significantly contribute to these disparities. We investigate whether several extensions of paternity leave in Spain, which aimed to equalize parental leave entitlements for mothers and fathers, reduced statistical discrimination against women in firms. If firms anticipate that women will take disproportionately more time off for childcare, they may discriminate against them in hiring, promotion, or pay. By increasing fathers' leave, such reforms could reduce this gap in expected parental leave take-up, thereby alleviating statistical discrimination. We exploit a regression discontinuity design around the birth date of children, using a unique administrative dataset including the universe of Spanish firms and their employees. Our preliminary findings reveal no statistically significant effects of increased paternity leave exposure on firms' subsequent hiring of women, their relative wage bill for women, or the promotion of women. This suggests that, while paternity leave extensions may be important for gender equality in caregiving, their impact on firm-level statistical discrimination in the labor market may be limited, at least in the short to medium term.

Presenter: Libertad González, Universitat Pompeu Fabra

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