Maternity, paternity, and parental leave: Origin, changes, and impact of a law that aims at encouraging leave use of both parents

Abstract

In May 2000 the Icelandic parliament unanimously voted in favour of a new law on paid parental leave, involving radical changes for parents. The twofold aim of the law was to ensure that children received care from both parents and to enable both men and women to combine family life and participation in the labour market. The law was in effect until a total revision let to a new law being adopted in 2020, though with the same twofold goal. In this article we ask if the goals have been reached. Data collected with four surveys among first-time parents, over a 20-year period, were analysed to identify changes in the care participation of mothers and fathers and the development in parents’ labour market participation a year before birth of their first child until it reaches the age of three. Results show that since the introduction of the law, fathers have increased their participation in care for their children and that the gap in parents’ labour market participation and working hours has narrowed.