The gender employment gap: Challenges and solutions. Details of policy measures to support the labour market participation of women

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1 The gender gap: Challenges and solutions Details of policy measures to support the labour market participation of women

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3 Details of policy measures to support the labour market participation of women Table A1: Labour market policy measures Name of measure and country Vocational reintegration (Perspektive Wiedereinstieg) (Germany) Promotion of female entrepreneurship (Sweden) In-Work Credit for Lone Parents (United Kingdom) Phasing out the transferability of the general tax credit (Algemene heffingskorting) (Netherlands) Universal service cheque (chèque emploi service universel) (France) Description This programme was funded by the European Social Fund ( ) and supported women who had been outside for family reasons for at least three years and were seeking to re-enter the labour market. It was run jointly by the Federal Ministry for Family, Senior Citizens, Women and Youth and the Federal Labour Agency and was implemented through 17 pilot projects in 20 locations. The programme offered information via an online portal, counselling, coaching and accreditation programmes. It targeted employers using an online advisory portal containing good practice examples on strategies for supporting re-entrants, family-friendly policies and information about financial support for employers. The programme ( ), which was funded by the government through the Swedish Agency for Economic and Regional Growth and implemented via regional projects, supported female start-up activity and entrepreneurship. It provided financial support for business development, information and mentoring, supporting potential and active female entrepreneurs, students, business networks and other relevant organisations. It also sought to create role models via an Ambassadors programme. In-Work Credit ( ) was a tax-free weekly payment of 40 ( 60 in London) to long-term unemployed (52+ weeks) lone parents who entered, paid for up to a year following their entry into work. To be eligible, lone parents had to work at least 16 hours a week and to have at least one dependent child under age 16. The programme was also extended to two-parent families on benefits between 2008 and 2010 in a number of pilot areas. The aim of the payment was to create incentives for lone parents on benefits, the vast majority of whom are women, to enter work and to provide financial support to help make sustainable over time. This reform gradually eliminates the transferability of the general tax credit, which allowed non-earning or low-earning individuals to transfer the discount on their income tax and national insurance contributions, to which all Dutch taxpayers are entitled, to their tax partners. This amounted to a negative income tax and resulted in a high marginal tax rate for second earners, rendering entering work relatively unappealing for individuals with a higher-earning partner. Hence, the transferable credit was known as the kitchen sink subsidy (aanrechtsubsidie). From 2009, the transferable the general tax credit is being reduced over a 15-year period at a rate of 6.67 percentage points per annum. From 2024, the general tax credit will no longer be transferrable. The chèque emploi service universel (CESU) is a voucher system introduced in The system can be used by employers to fund and declare the of domestic services workers, such as cleaners, care or childcare workers, or to pay an agency or external provider that supplies such services. The system simplifies the procedures that people must follow in order to hire, pay and make social security contributions for such employees, has financial advantages, and offers co-financing opportunities. Under the prefinanced CESU system, beneficiaries receive vouchers that allow them to recover (part of) the costs of domestic services or other specified services (such as external childcare) from their employers (in the case of the so-called HR CESU) or from the local authority (in the case of the social CESU for elderly and disabled individuals). Companies can claim 1 Eurofound 2016

4 The gender gap: Challenges and solutions a tax reduction of 25% on this expenditure. Users of CESUs are entitled to tax credits or reductions of 50% of the amount paid (salary plus social security contributions) up to the value of 12,000 per annum (higher for households with additional dependants or for users who are disabled or have disabled dependants). Users also benefit from simplified procedures and may (in the case of elderly or disabled individuals) be granted exemptions from employer social security contributions. The aims of the CESU system are to (i) fight against informal and undeclared work in domestic services; (ii) create jobs in the home services sector; and (iii) develop and improve the quality of this sector, particularly for people with few qualifications such as cleaners by simplifying the process for hiring and paying domestic and temporary workers, part-time workers and casual labourers. Table A2: Childcare support policies Name of measure and country Supplement for the free choice of childcare (complémente de libre choix du mode de garde) (France) Universal service cheque (chèque emploi service universel) (France) Description The benefit is intended for parents using the services of a registered childminder, a childminder in their own home (for instance, a live-in nanny or a maternal assistant), or a private childcare provider for a child under the age of six. It aims to give parents flexibility regarding their childcare options. The benefit consists of a contribution to the costs of the childminder s wage, dependent on the age of the child and household income (never more than 85% of costs), and payment of (part of) the associated employer social security contributions (100% for a registered child-minder and 50% for a child-minder in the home, up to a ceiling of 442 per month for a child under three and 221 for a child between ages three and six). The amount depends on the family income, the number of parents present and working, the number of children and their age. The chèque emploi service universel (CESU) is a voucher system introduced in The system can be used by employers to fund and declare the of domestic services workers, such as cleaners, care or childcare workers, or to pay an agency or external provider that supplies such services. The system simplifies the procedures that people must follow in order to hire, pay and make social security contributions for such employees, has financial advantages, and offers co-financing opportunities. Under the prefinanced CESU system, beneficiaries receive vouchers that allow them to recover (part of) the costs of domestic services or other specified services (such as external childcare) from their employers (in the case of the so-called HR CESU) or from the local authority (in the case of the social CESU for elderly and disabled individuals). Companies can claim a tax reduction of 25% on this expenditure. Users of CESUs are entitled to tax credits or reductions of 50% of the amount paid (salary plus social security contributions) up to the value of 12,000 per annum (higher for households with additional dependants or for users who are disabled or have disabled dependants). Users also benefit from simplified procedures and may (in the case of elderly or disabled individuals) be granted exemptions from employer social security contributions. The aims of the CESU system are to (i) fight against informal and undeclared work in domestic services; (ii) create jobs in the home services sector; and (iii) develop and improve the quality of this sector, particularly for people with few qualifications such as cleaners by simplifying the process for hiring and paying domestic and temporary workers, part-time workers and casual labourers. Eurofound

5 Details of policy measures to support the labour market participation of women Public childcare and childrearing allowance (vårdnadsbidrag) (Sweden) Guaranteed day care (Denmark) The Swedish public childcare system is open to all parents and operates on a full-time basis, with most facilities being open from 6.30 until Public childcare is funded through a combination of parental contributions and large subsidies from municipal taxation. Parental contributions are directly proportional to parents income and inversely proportional to the number of children in a family, and are capped at 3% of family income, but no more than 1,260 SEK (about 146) per month. Parental contributions cover, on average, only 11% of the real cost of a place in pre-schools, which means that the cost of childcare is heavily subsidised. Pre-school is free for children aged between three and six for up to 15 hours per week. Children are guaranteed a place in formal childcare after they reach the age of one. The child-rearing allowance (vårdnadsbidrag) is a municipal benefit that seeks to give parents the option of choosing how their children are cared for. From 2008, municipalities could choose to introduce the allowance as a payment to parents of children between the ages of one and three who are not enrolled in public childcare services and who have used 250 days of parental leave for their child already. It can be granted to parents who are in, but cannot be combined with other social security benefits relating to un, sickness, parenthood or pension. The allowance amounts to 3,000 SEK (about 348) per month. This policy entitles parents to a guaranteed day-care place for their children at the end of the parental leave period. Local authorities are responsible for providing places and must cover parents expenses for a private care scheme or a place in another local authority if they fail to do so within a four-week waiting period. Parents are entitled to full-time places, with children of two working parents having priority. Places are subsidised to at least 75% of their cost, with subsidies being paid directly to childcare providers and the remainder borne by parents. Parental contributions are income-related. Table A3: Leave-related measures Name of measure and country Maternity, paternity and parental leave system (Graviditetsorlov, Barselsorlov, Fædreorlov, Forældreorlov) (Denmark) Description The Danish maternity, paternity and parental leave system grants parents one year of leave in respect of childbirth (counting maternity, paternity and parental leave). It is a universal protection scheme that covers the active population, including the self-employed. The mother is entitled to 4 paid weeks of maternity leave before the expected date of birth and 14 weeks of maternity leave after the birth. The father is entitled to 2 paid weeks of paternity leave within the first 14 weeks of the birth. On top of that, both parents are entitled to 32 weeks after the 14th week of freely shared parental leave (with no quotas). The total leave period with maternity leave benefits is thus 52 weeks (the longest in the EU). To cover the loss of pay during maternity, paternity and parental leave, parents receive cash benefits based on former earnings up to a ceiling of 546 per week for full-time employees and self-employed people. This is funded by the state from general taxation, except for first eight weeks, when municipalities bear half of the cost. The parental leave period can be split or postponed but must be taken before the ninth birthday of the child. Parents also have the option of extending their parental leave, up to 46 weeks only for employees and self-employed and 40 weeks for all others. Over this extended period, it is possible to return to work on a part-time basis, extending the leave proportionally, by agreement with the employer. 3 Eurofound 2016

6 The gender gap: Challenges and solutions Maternity fund for self (Denmark) Statutory maternity leave and pay (United Kingdom) Parental allowance (Elterngeld) (Germany) Care Leave Act and Family Care Leave Act (Pflegezeitgesetz und Familienpflegezeitgesetz) (Germany) Self-employed women and men are entitled to the same parental leave entitlements as employees, as described above. Women can thus receive a weekly payment during the 4 weeks before childbirth and for 14 weeks after birth. Self-employed men can receive a weekly payment for 2 continuous weeks within the 14 weeks following the birth. Both parents can share a leave of 32 weeks after the initial 14 weeks. The maternity fund for the self-employed was introduced in 2013 and provides additional compensation to self-employed workers on top of their state benefits in order to increase their earnings during parental leave. The scheme is administered on a contributory insurance basis, based on the contributions of self-employed workers. The fund builds upon the eligibility of self-employed people for state benefits and provides additional compensation to be claimed under the maternity, paternity and parental leave system. Statutory maternity leave in the UK lasts 52 weeks. All mothers who have been in for a continuous period of 26 weeks, ending 15 weeks before the expected week of childbirth, are eligible. It comprises ordinary maternity leave (the first 26 weeks) and additional maternity leave (the final 26 weeks). It is compulsory for women to take 2 weeks off after childbirth, while under the regulations for shared parental leave, it is possible for mothers to share the remainder of the leave with their partners. Statutory maternity pay is paid to new mothers for up to 39 weeks. Maternity allowance is also in place for eligible mothers who may not qualify for statutory maternity leave and pay, such as self-employed mothers, mothers in who are not eligible for statutory maternity leave and pay, or mothers who have recently stopped working. The parental allowance is a benefit to which parents are entitled for the first year (under certain conditions over longer periods) after the birth or adoption of a child if they reduce their working hours (to 30 hours at most) or take leave to care for their child. It is structured as an income-replacing benefit for working parents (67% of after-tax earnings, up to a maximum of 1,800), but unemployed parents and students are entitled to a basic allowance of 300 per month. Single parents are entitled to 14 months of support, while two-parent families can only obtain the allowance for this period if the second partner takes at least two months of leave. Self-employed parents are also entitled to the allowance provided they work no more than 30 hours per week. The Care Leave Act (2008) defines employees right to take short- or longterm leave in order to care for close relatives (including grandparents, parents and parents-in-law, partners, siblings, children and grandchildren). All employees are entitled to take up to 10 days of short-term leave to address unexpected care needs. Employees in businesses with more than 15 members of staff are also entitled to take long-term leave or work part-time for up to six months in order to care for close relatives whose care needs are recognised in line with the standards of the German Long-Term Care Insurance. Periods of leave are unremunerated, and those who exit no longer make social insurance contributions via their employer, but contributions can be made on their behalf via the care insurance of the recipient of their care, provided it exceeds 13 hours a week. The Family Care Leave Act (2012) seeks to improve the position of employees who care for close relatives on a more long-term basis. Subject to a voluntary agreement between employee and employer, such individuals can reduce their working hours to as few as 15 per week on average for up to two years. Wages are reduced in line with working hours, but employers top up the reduced wage by 50% of the difference between the new and former wage. This top-up payment is funded via a credit balance built up by the Eurofound

7 Details of policy measures to support the labour market participation of women employee before the period of leave, or constitutes an advance on future pay compensated by reduced wages after the employee s return to standard working hours. The Federal Office for Family and Civil Society provides employers with interest-free loans to fund the top-up payments in the latter case. Family care leave does not impact employees entitlement to care leave under the 2008 Act. During periods of leave under both Acts, employees enjoy special dismissal protection. Care leave (zorgverlof) (Netherlands) Flexible parental leave scheme (Föräldraledighet) (Sweden) The Dutch Work and Care Act (2001) regulates short- and long-term care leave. Short-term care leave can be taken by any employee for the purposes of administering necessary care to a spouse or registered/co-habiting partner, a resident child or relative of the first degree affected by illness, under circumstances where there is no one else able to care for the sick person. Employees are entitled to leave of up to twice the length of the working week in every 12-month period. Employers are required to pay employees 70% of their wages during such leave and at least the statutory minimum wage. Long-term care leave is the care for a related person (defined in the same way as for short-term leave) with a life-threatening disease. Employees are entitled to unpaid leave of up to six times the length of the working week in each 12-month period. Until 2015, leave had to be part-time (at most half the length of the employee s working week, unless the employer granted an exception). From 1 January 2015, restrictions on the form in which longterm care leave is taken have been eliminated; employees can now structure it in any desired form in the absence of compelling business interests precluding this. Reforms in 2015 also expanded the circle of individuals for whose care longand short-term care leave can be taken, to include second-degree relatives, housemates and, under certain conditions, others with whom the employee has a social relationship. The Swedish parental leave scheme is part of the compulsory social insurance system. Each parent is entitled to take full-time leave from work until their child is 18 months old. The scheme provides 480 days (equivalent to 16 months) of paid leave per family, and these can be used during the first 18 months, but also afterwards. Within this period, 60 days are reserved for each parent and cannot be transferred. The remaining 12 months can be freely shared between parents. Both parents can take up to 30 days of leave at the same time (so-called double days ) until the child reaches one year of age. Paid parental leave can also be taken on a flexible basis, in hours or days or on a part-time basis. Parental allowance is not paid to parents who adopt a child above the age of 10. As an economic incentive for parents to share parental leave more equally, a gender equality bonus was introduced in Tax credits are given to parents who share the parental leave of 16 months equally. Financial compensation for loss of income while on parental leave is funded by social protection insurance (föräldraförsäkring) and comprises earnings-related and flat-rate benefits. Parental benefit has three different compensation levels. The first, most generous level (sickness benefit level) can reach a maximum of SEK 935 ( 97) per day. The second compensation level (basic level) is SEK 225 ( 24) per day. Parents are eligible for the basic level (minimum guaranteed benefit) if they have had little or no income. The sickness benefit and basic levels last for 390 days (13 months) of parental leave. The first 180 days of parental benefit, as well as the days reserved for either parent, are always at the sickness benefit or at basic level. The third compensation level, referred to as the minimum level, lasts for the remaining 90 days. The minimum level is SEK 180 ( 19) per day. 5 Eurofound 2016

8 The gender gap: Challenges and solutions Table A4: Flexible working and work family reconciliation measures Name of measure and country Parenthood Charter in Enterprise (La Charte de la Parentalité en Entreprise) (France) Working Hours Adjustment Act (Wet Anpassing Arbeidsduur) (Netherlands) Flexible working regulations (United Kingdom) Description The Parenthood Charter aims to encourage companies to make commitments to help employees balance their work and family lives. The main objectives are to change attitudes towards parenting in the company, create a favourable environment for employees with children, and respect the principle of nondiscrimination in the professional development of employees with children. The charter can be signed by any and all French enterprises, and activities envisaged are aimed at employees with children, especially women. This Act provides employees who want to adjust their working times with strong rights. Employees may request an expansion or reduction of their working hours and, under certain conditions, alter the terms of an existing contract. The Act aims to allow for more flexible transitions between full- and part-time to facilitate balancing work and care over the life course. Requests for alterations must be made in writing to the employer at least four months before the intended commencement date of the adjustment, and requests may only be rejected due to substantial business/service interests. The rights apply to employees who have worked for their employer for at least a year prior to the desired date of the adjustment across the public and private sector The statutory right to demand flexible working for parents of young children was expanded gradually to cover all employees from April The aim is to encourage flexible working practices to facilitate employees to improve their work life balance. All employees with at least six months service can request flexible working, which includes job sharing, homeworking, parttime work, compressed hours, flexitime, annualised hours, staggered hours and phased retirement. Applications can only be rejected by employers for legitimate business reasons. Eurofound

9 Details of policy measures to support the labour market participation of women The tables below present an overview of the policy measures within the various policy categories, showing the targets to be met in terms of population, outputs and outcomes and in terms of performance or effectiveness Table A5: Overview of labour market policy measures Name of measure and country Vocational reintegration (Perspektive Wiedereinstieg) (Germany) Promotion of female entrepreneurship (Sweden) Targets Population Outputs Outcomes Women who have been outside the labour force for family reasons for more than three years but would like to start working again; focus on women who would have been unlikely to reenter without the programme Current and potential female entrepreneurs, female students, business networks, and organisations supporting female start-ups and entrepreneurs Number of eligible women who participate Number of women, families and employers who use the online platform Number of women who take up counselling, coaching and qualification provision Number of women receiving mentoring, advice and information Number of female entrepreneurs receiving financial support Number of women Number of participants who reenter (at a level in keeping with their qualifications) Level of support for re-entry into work from women s families Level of use of household services by participants Level of awareness among employers of the advantages of hiring female labour market re-entrants Number of women who consider entrepreneurship as a career option Number of start-ups formed Sustainability, growth, turnover, and of Performance or effectiveness From 2009 to 2012, more than 17,000 women participated in the programme and received counselling (one to three contacts); 4,660 of these women made further use of the provided support for reentering the labour market over a period from six months to one year. A quantitative evaluation of the first phase of the programme (Diener et al, 2013), which compared the experiences and outcomes of participants with those of matched individuals who were supported only via the standard provisions of the public services, found that three-quarters of participants were at least happy with the support they received, significantly more than non-participants. While participants had lower levels of motivation to look for work before they entered support programmes than nonparticipants, their motivation was more likely to increase. Among both participants and non-participants, most of those who re-entered work were working part-time; only 10% had full-time work. While the women participating in the programme were likely to be more distant from the labour market than nonparticipants who registered with the public services, their rates at the end of the study were (nonsignificantly) higher than those of matched non-participants. The results suggest that the intervention may have an effect in the long-run in particular. Qualitative elements of the same evaluation found that traditional gender roles among the women and their families were key in driving exits and long periods outside the labour market. Women reported that high levels of support during the re-entry process were very helpful. Retraining offered women the opportunity to redirect their careers towards desired professions or to update their skills, as well as allowing them and their families to practice a changed structure of everyday life. Building their professional confidence through conversations with other participants was also a central element of the process. In the first funding cycle ( ), more than 40 national projects and 600 regional projects were implemented. Between 2008 and 2009, 17,500 women attended business-development activities within the framework of the programme. More than 880 female entrepreneurs participated in the Ambassadors for Women s Enterprise programme, 440 mentoring pairs were formed, 18,700 7 Eurofound 2016

10 The gender gap: Challenges and solutions attending businessdevelopment activities Number of business networks established Number of Ambassadors for Women s Enterprise Number of women benefiting from Ambassadors programme participating startups students participated in courses, and 420 new businesses were started. It has been argued that the Ambassadors programme, which has received extensive media coverage, has increased the visibility of female entrepreneurs. Universal service cheque (chèque emploi service universel) (France) Employers of domestic service workers; individuals requiring support for independent living Number of HR CESUs provided by companies to their employees Number of social CESUs provided by local authorities to support independent living Proportion of domestic work that is undeclared Employment quality of domestic work Level of domestic service Use of domestic services by families In 2012, HR CESU reached 750,000 recipients, while social CESUs involved around 150,000 recipients. The beneficiaries were mainly women (68%), and aged between 30 and 49 (79%); 93% of beneficiaries were living with a partner, and 70% used the vouchers for childcare purposes. According to a recent study, 330,000 jobs were created thanks to CESU between 2005 and 2011, and 1.5 million people were employed. The undeclared work decreased from 40% in 2005 to 30% in Conditions of domestic work, quality of service, and gender equality improved. In-Work Credit for Lone Parents (United Kingdom) Long-term unemployed (52+ weeks) lone parents of children under 16 Number of lone parents claiming the credit Duration of claims Number or share of eligible lone parents entering for at least 16 hours a week Number or share of eligible lone parents sustaining for 52 weeks The total number of individuals who claimed In-Work Credit for Lone Parents over the period of its existence was more than 407,000. Data on the duration of claims from various evaluations and data sources (DWP, 2010; Brewer et al, 2009) found that around 70% of claimants received the benefit for the full 52 weeks, with only around 15% claiming for less than six months. An impact evaluation found that the main impact of the measure had been to encourage more lone parents to leave benefits and start work than would otherwise have done so, an estimated 20% of entries into work among by recipients being identified as additional. However, little of the fairly high levels of job retention among recipients could be directly attributed to the benefit. High levels of job retention were found among those who claimed for the full 52 weeks. Qualitative impact evaluations suggest that the effectiveness of the financial incentive offered by the In-Work Credit for Lone Parents varied between groups, being weaker for individuals with more recent histories of work and labour market attachment, and stronger for those with more inconsistent work histories, who were intrinsically less motivated to find work. The benefit also expanded the type of work parents considered to include temporary work or lower-paid work. The reliable additional income helped smooth the transition by providing funding for work-related expenses and helping with budgeting. Eurofound

11 Details of policy measures to support the labour market participation of women Phasing out of the transferability of the general tax credit (algemene heffingskorting) (Netherlands) Non-earning or lower-earning partners in fiscal partnerships born after Number of individuals profiting from transferred tax credit Number of nonearning or lowerearning tax partners entering Change in incentive structure facing nonearning or lowerearning partners and couples The reforms are in progress and have not been evaluated. Ex-ante calculations suggested that the reforms would have a significant positive impact on labour market participation of women with partners as well as on hours worked (De Mooij and Stevens, 2006; CPB, 200 ; Kok et al, 2007). By contrast, the recent National Reform Programme 2014 argued that the effect of the reform on total female labour market participation in terms of hours worked would be marginal as it will only affect a small minority of women, since the majority of women already work and can take maximum advantage of the credit. Table A6: Overview of childcare support policy measures Name of measure and country Supplement for the free choice of childcare (complémente de libre choix du mode de garde) (France) Universal service cheque (chèque emploi service universel) (France) Public childcare and childrearing allowance (vårdnadsbidrag) (SE) Targets Population Outputs Outcomes Parents of children under the age of six using the services of a registered childcare provider, a private childcare provider, or a child-minder within their own home Employers of domestic service workers; individuals requiring support for independent living Parents of children under the age of three or schoolentry age Number of eligible parents taking up the benefit Number of HR CESUs provided by companies to their employees Number of social CESUs provided by local authorities to support independent living eligible parents taking up childcare entitlement parents caring for their children in the home Number of eligible mothers returning to Proportion of domestic work that is undeclared Employment quality of domestic work Level of domestic service Use of domestic services by families Costs of external provision of childcare for parents Quality of childcare provision Number or eligible parents returning to work Degree of choice between formal care and care in the home open to parents Performance or effectiveness In 2013, 864,700 families received the benefit. In 2012, HR CESU reached 750,000 recipients, while social CESUs involved around 150,000 recipients. The beneficiaries were mainly women (68%), and aged between 30 and 49 (79%); 93% of beneficiaries were living with a partner and 70% used the vouchers for childcare purposes. According to a recent study, 330,000 jobs were created thanks to CESU between 2005 and 2011, and 1.5 million people were employed. The undeclared work decreased from 40% in 2005 to 30% in Conditions of domestic work, quality of service, and gender equality improved. According to the European Commission s 2014 report on early childhood education and care, more than half of children under three attend formal childcare (excluding registered childcare in the home), the third highest rate in the EU28. More than half of these attend for 30 hours or more per week. 95% of children between three and six attend formal childcare. These figures are well above the EU Barcelona targets for childcare provision and the EU averages of 30% and 83% respectively. The child-rearing allowance has not been formally evaluated but appears to have a low take-up. It has been criticised as encouraging mothers to stay at home (Bertelsmann Stiftung, 2014). 9 Eurofound 2016

12 The gender gap: Challenges and solutions Guaranteed day care (Denmark) Parents of children aged 26 weeks to 6 years eligible parents taking up childcare entitlement Costs of external provision of childcare for parents Quality of childcare provision eligible parents returning to work In 2008, 1 child in 6 (17%) was in day care before the age of one (compared to 1% 7% in the other Nordic countries), 9 out of 10 children aged 2 3 were in day care and almost all children aged 3 5 attended day care. 90% of children aged 0 2 and 83% aged 3 6 are enrolled in full-time care. The 2014 report on early childhood education and care by the European Commission shows that due to the relative low costs of day care in Denmark, a high level of lowincome families make use of the facilities. According to a Eurofound survey, 79% of Danish mothers who take parental leave resume work to the same extent as before. High-quality childcare arrangements have been identified as an important factor helping Danish mothers to return to fulltime. Table A7: Overview of leave-related measures Name of measure and country Flexible parental leave scheme (Sweden) Targets Population Outputs Outcomes Parents (both genders) Number of employees (both genders) taking up parental leave Share of fathers and mothers making use of parental leave scheme (and division of the leave within families) Number of mothers returning to work following childbirth Improve income protection for parents during leave from due to parenthood- or childcare-related reasons Increase incentives for parents (and mothers especially) to avoid interrupting their gainful for longer phases Increase rates of return to working life after childbirth Give families flexibility to choose how to take leave entitlements and how to combine these with Encourage a more equal distribution of parental leave within the family Performance or effectiveness Despite the flexibility of the leave system, mothers continue to take up the largest share of parental leave days. It is likely that a large segment of the mothers who did not use parental allowance are self-employed, without the same opportunities to avail themselves to the same level of parental allowance as parents who are not selfemployed. Fathers in Sweden take up about 24% of the total amount of parental leave days, still considerably more than in most EU Member States. Men who are employed in male-dominated blue-collar occupations have been shown to take less parental leave than men who work in less gendersegregated occupations. About 48% of fathers (of children born in 2007) who took parental leave went on leave during the child s first year; 72% used parental leave within the first two years of the child s life (children born in 2006). The reservation of months to each parent has been proven to increase the uptake of parental leave among fathers, but it has been difficult to point to any average effects in labour supply. Evidence also shows that parental leave (own leave and spousal leave) has a significant effect on income. Each month the father stays on parental leave has a larger positive effect on maternal earnings than a similar reduction in the mother s own leave. Maternity, paternity and parental leave system (Denmark) Parents (both genders) Share of employed people accessing maternity and parental leave Share of leave taken by mothers and fathers Provision of adequate income protection and flexible leave entitlement for both parents in case of childbirth Better reconciliation of work and family No formal evaluation of the labour market impact of the measure is available. According to monitoring by Statistics Denmark, mothers still take up a larger share of available leave, due to traditional perceptions of gender roles, organisational cultures that are not family-friendly, and workplace expectations that are not Eurofound

13 Details of policy measures to support the labour market participation of women life Allowing parents to choose freely how to share parental leave entitlement Increase levels of maternal and rates of return to work after childbirth conducive to fathers taking up leave. Fathers took only 7% of the overall parental leave period in (Statistics Denmark, 2013), much less than in Sweden and Norway. In 2013, fathers took an average of 26 days leave against the 276 leave days of mothers (Statistics Denmark, 2013). Father s take-up of paternity leave is nonetheless very high relative to the EU average. In 2009, 61% of eligible fathers took advantage of their earmarked entitlement to two weeks of paid paternity leave, probably due to the generosity of the entitlement. Maternity fund for self (Denmark) Self-employed people (estimated at 16,000 people aged 17-49) Share of selfemployed people accessing maternity and parental leave Better access to and improved income protection in case of maternity or parental leave for selfemployed people It is not possible to assess performance yet as contributions to the maternity fund for the self-employed has been compulsory only since 1 September A first estimate of the target group for the legislation, based on data from Statistics Denmark, sets the number of selfemployed people at 16,000 aged years old. It is further estimated that 750 women and 2,500 men would receive compensation from the scheme. More men than women will benefit due to the higher percentage of self-employed men relative to self-employed women. Statutory maternity leave and pay (United Kingdom) New mothers who are or have recently been in (primary target); parents (both genders) (secondary target) Uptake of maternity leave and pay (in absolute terms) Length of leave taken by mothers (and how this is shared with their partners under the 2015 Shared Parental Leave regulations) Increased levels of maternal Increased rates of return to work after childbirth Improved income protection in case of maternity and parental leave Formal evaluations found that the increase in the maximum available period of maternity leave and pay post-2006 led directly to a significant increase in average number of weeks of maternity leave taken by mothers from 32 weeks in 2006 to 39 weeks in Despite all employed mothers being entitled to 12 months of maternity leave, 55% took 39 weeks or less (as no statutory maternity pay is available after 39 weeks). The extension of maternity rights post particularly benefited mothers in the lowest pay group with the lowest paid partners, working in small and mediumsized private organisations. This reduced the differences in the length of leave between different groups of mothers according to their labour market position. In terms of rates of return to work, 77% of mothers who had given birth in 2008 and had worked in the year prior to birth had returned to work months later, a 1% increase from the previous survey wave in This modest increase showed that, in 2008, the extension of maternity rights had only had a limited impact on increasing the rate of return to following childbirth, although it had helped in sustaining it at prior levels despite the beginning of the economic downturn. Type of maternity pay received was found to be one of the strongest predictors of returning to work. The rate of return to work was 90% among mothers who had received the most generous pay package, compared with 38% among those who received no maternity pay. Parental allowance (Elterngeld) (Germany) Parents (both genders) Number of applications for parental allowance Share of fathers and Improve income protection for parents during leave from due to Results of an evaluation conducted following introduction showed encouraging signs of effectiveness in terms of take-up. 11 Eurofound 2016

14 The gender gap: Challenges and solutions mothers applying for parental allowance Number of mothers returning to work following childbirth parenthood- or childcare-related reasons Provide financial support for expenses associated with childrearing Increase incentives for parents (and mothers especially) to avoid interrupting their gainful for longer phases Increase rates of return to working life following childbirth Give families flexibility to choose how to split leave entitlements and how to combine them with Encourage a more equal distribution of parental leave within the family Between January 2007 and March 2008, nearly 100 % of parents applied for the new parental allowance. In 12% of families, both mothers and fathers received parental allowance. The involvement of the father was more likely if it was the first child for the parents, the mother was employed the year before birth and the father held a graduate occupation. The parental allowance stabilised the household income of many young families: 45% of mothers said that the household income was reduced in the year after birth; 29% stated the income was unchanged; and 21 % reported a rise of income. Families with low or medium level of income gained the same or an increased income. Since the introduction of parental leave in 2007, career breaks have become notably shorter. The number of women who go on parental leave during the child s first year has increased, but more women return to work in the child s second year. Care Leave Act and Family Care Leave Act (Pflegezeitgesetz und Familienpflegez eit-gesetz) (Germany) Employees with care responsibilities for close relatives employees with care responsibilities who have access to long-term family care leave arrangements eligible employees taking up the care leave provisions Increased income protection during periods of care leave individuals with care responsibilities who remain in individuals with care responsibilities who return to previous levels of following periods of leave Improved opportunities for families to reconcile work and care responsibilities in a flexible manner The effects of the development of the legislative framework for care were evaluated in The evaluation produced the following findings on the period between the introduction of the rights to leave under the Care Leave Act (July 2008) and May % of eligible individuals responsible for the care of a close relative took up their right to short-term care leave, an estimated 9,000 of 150,000 eligible individuals; the most common reason reported for not taking up the right was a lack of knowledge of the entitlement. 4% of individuals who were entitled to take longer-term care leave made use of that right; at the level of the population, it was extrapolated that 18,000 out of 480,000 eligible individuals had taken up the right; leave appears to frequently be taken for shorter periods and is fulltime in the vast majority of cases. the vast majority of individuals entitled to take care leave had not done so; more than half of these reported not having any knowledge of the rights. There is no up-to-date evidence on the uptake and effects of the family care leave provisions, but earlier data suggests that take up was low (below 200 in the first one and a-half years after implementation). Care leave (zorgverlof) (Netherlands) Employees with care responsibilities for relatives, housemates and others with whom they have a social relationship employees with care responsibilities who can take leave when required requests for leave granted entitled employees (both genders) Increased income protection during periods of care leave individuals with care responsibilities who remain in individuals with care responsibilities who return to previous levels of Statistics Netherlands provides some evidence on the uptake of the various forms of care leave. In 2013, 232,000 women and 200,000 men took care of a sick family member for a short period. 32% of female short-term carers and 38% of male short-term carers took some form of leave. 40,000 individuals (24% of men who took leave and 29% of women) used short-term care leave entitlements, and 7% used emergency leave. A large proportion (15%, or 43% of those who took leave) used their annual holiday entitlements or entitlements Eurofound

15 Details of policy measures to support the labour market participation of women taking up leave entitlements Flexibility of leave arrangements Level of financial support received by employees during periods of care leave following periods of leave Improved opportunities for families to reconcile work and care responsibilities in a flexible manner Levels of social care provided by relatives to reduce hours to compensate for overtime. In the same year, 443,000 employees (245,000 women and 198,000 men) cared for a sick family member over a longer period of time. 17% of such carers took some form of leave. 26,000 individuals (6% of carers and 35% of those who took leave; 9,000 men and 16,000 women) took short-term care leave, and 8,000 (11% of those who took leave; 3,000 men and 5,000 women) took long-term care leave for the purposes of such care. 2,000, exclusively women, reported using other forms of unpaid leave. 23,000 individuals used annual holiday entitlements or shorter working entitlements based on overtime. Table A8: Overview of flexible working and other work family reconciliation measures Name of measure and country Targets Population Outputs Outcomes Performance or effectiveness Parenthood Charter in Enterprise (La Charte de la Parentalité en Entreprise) (France) The charter can be signed by any and all French enterprises. Activities are envisaged to most benefit employees with children, especially women. Number of people accessing services to support employees daily lives Number of people accessing financial support Number of people accessing human resources and managerial support Encourage companies to commit to helping employees work life balance Change company attitudes towards parenting Create a favourable environment for employees with children, especially pregnant women Respect nondiscrimination in the professional development of employees with children Around 500 employers have signed the charter, affecting 30,000 establishments and 4.5 million employees (15% of the workforce). Half of the signatories are companies with more than 1,000 employees, while half are SMEs. This is representative of France as a whole. Companies have reported the implementation of several good practices. Working Hours Adjustment Act (Wet Anpassing Arbeidsduur) (Netherlands) All employees who have worked for their employer for a year prior to the desired adjustment date Number of requests for flexible working Number of employees working flexibly Establish strong rights for employees wishing to adjust their working times Facilitate flexible transitions between full-time and parttime Facilitate the participation of women with care responsibilities in particular Increase men s role in care work It is difficult to isolate the achievements of the legislation from more general trends in the Dutch labour market. A 2008 survey found 90% of employers had dealt with at least one such request in the previous two years. Employers suggested that they are generally able to deal with these independently, and employees do not fear negative consequences due to making requests. The effect of the Act is largely indirect, in that it makes employers realise that they have to take requests into serious consideration. Some employers stress it adds little to existing possibilities for granting adjustments; others consider the Act to be too favourable to employees. Still relatively few men reconcile care responsibilities with work. Interestingly, some employees have leveraged more working hours, especially during the recession. Flexible working regulations (UK) Originally available to parents of young children and carers, the measure has Number of requests for flexible working Number of people working flexitime Formalise the right to request flexible working Stimulate dialogue Survey evidence shows increased availability and take-up of flexible working. Similar evidence indicates a net positive impact of the flexible working 13 Eurofound 2016

16 The gender gap: Challenges and solutions recently been expanded to all employees who have worked for the same employer for 26 weeks Number of people taking advantage of homeworking that reveals opportunities for changing working practices Increase take-up of flexible working practices Effect a attitudinal change to eliminate the stigma associated with flexible working Recognise the business benefits associated with flexible working Increased retention and commitment regulations as reported by female employees in particular. Previous expansion of the regulations resulted in an estimated increase in uptake by 1 percentage point, and an additional 1.25% of requests would result from covering all employees. The annual benefit to employers from higher productivity, lower labour turnover, and reduced absenteeism over a period of 10 years is expected to be around 475 million. Additionally, wider benefits may also occur through increased labour market participation. Improved work life balance is likely to benefit health, well-being and family life. Employers may also benefit from reduced wage bills and a reduction in overheads. Eurofound