Reserving time for daddy: The short- and long-run consequences of fathers’ quotas

Abstract 

‘Daddy quotas’ that reserve some parental leave for fathers are increasingly common in developed nations, but it is unclear whether fathers respond to the binding constraints or the labeling effects they produce. Further, little is known about their long-term effects on household behavior. I examine the Quebec Parental Insurance Program, which improved compensation and reserved 5 weeks of leave for fathers. I find fathers’ participation jumped 250%, and the quota produced a flypaper effect: the 5 ‘daddy-only’ weeks stick to fathers even when the constraint does not bind. I also present causal evidence that paternity leave reduces long-run sex specialization.