Association Between Gendered Workplaces and the Length of Childcare Leave

Abstract

Previous research indicates that mothers base the length of their childcare leave on individual opportunity costs. While workplace dynamics and peer influences may affect the duration of the leave, empirical evidence remains inconclusive. This study investigates the association between childcare leave length and workplace characteristics, as well as peer influences in the Finnish institutional context. In Finland, mothers can extend their earnings-related childcare leave with a flat-rate home care allowance until their child turns three years old. At the same time, they are entitled to subsidised day care, allowing them to choose the length of their childcare leave. Our results show that, in the gender-segregated Finnish labour market, the length of childcare leave among mothers varies based on employment sector, number of employees, peers’ leave length, and the share of women in the workplace.