💡 Big picture:
- Family policy can re-shape household roles with lasting effects on gender inequality.
- Very generous benefits may actually discourage female labor force participation among high earners.
- Early father involvement is key to reducing the motherhood penalty.

👩‍👩‍👦 What about partners?
- If the mother is the higher earner: the father is more likely to take long leave, her earnings rise long-term, his decline.
- If the father is the higher earner: he does not increase leave, her gains fade after the benefit period.

🔎 Key findings:
- Mothers affected by the cap take shorter leaves, earn more during leave, and continue to earn more up to 9 years later.
- Why? The cap makes households financially tighter and mothers’ leave becomes more “expensive” → mothers work more

🚨 New research insight on parental leave, gender inequality, and family policy in Germany 🚨

Accepted at The Economic Journal 🎉

👉 Read the full paper here: academic.oup.com/ej/advance-a...

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