Question

give an in-depth economic analysis about Iceland's optional paternity leave policy. what is has done to decrease the wage gap and how it compares with other European countries?

Answer 1

The parental leave activity in Iceland is one of the efficient methods taken by the authority of Iceland. Parents begin their parental live up to one month before the estimated date of birth of a child. The participation of women in Iceland was very high compared to other European countries. The gender gap was considered on the basis of occupation, working hours, education and work experience. This parental leave policy improve the position of women in labour market. Taking leave in the maternity period reduce the market participation and the level of individual economic activity. The father’s don’t have the right for paternity leave.
This parental leave law was passed on May 9, 2000. This ensures the payment during the maternal or paternal leave. The mother can take leave on one month before the expected date of birth. This ensures the childcare and also the children get time to spend with their parents. This measure reduces the wage gap between men and women. The parent’s who are active in the labour market paid 80 percent of the average total salary during the leave. This law also ensure a minimum payment regardless of their salary. There is no maximum amount were set for this condition. This law will give proper awareness to the women about the selection of the partner and the right to giving child birth. Women who are very active in the labour market through this law will increase her productivity and also increase the confidence and trust towards labour market.