Can you give an in-depth economic analysis of Iceland's optional paternity leave policy? what is has...

Can you give an in-depth economic analysis of Iceland's optional paternity leave policy? what is has done to alleviate the gender wage gap and compare this policy with other Scandinavian European nations?

Expert Solution

Faters in Iceland has a strong position now because of the parental leave policy as both the parents have a role to play in childcare. In the year 2000 ,the parental leave legislation came into effect.Nine months of leave was divided between both the parents.Three months of leave was for the mother, three months for the father and the remaining 3 months was shared between the two.

In 2016, Iceland's gender pay gap was 16.1 %.This policy has reduced gender inequality in Iceland.Paid parental leave for dad helped in alleviating gender wage gap. Iceland has made it illegal to pay less to women.It is a successful policy because father's are using the leave.Iceland is the first country to enforce equal pay law. Such policies are becoming gender neutal and so companies are using it.Taking maternity leave increased the wage gaps women are out of work for a long period . But when men and women share the leave , wage gap gets reduced.

Some countries in Europe offer paid parental leave but there are other countries which offer a fixed amount or an allowance. Some countries like Spain , France offer unpaid leave. So parental leave differ in Iceland from Europe.

Rahul Sunny answered 2 years ago

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