What is the Effect of a Paternity Quota in Paternal Leave on Job Satisfaction? The Effect of the Daddy Months of 2007 “Elterngeld” Reform on Job Satisfaction of German Parents using SOEP data

Abstract

This thesis investigates the effect of a paternity quota on job satisfaction. The effect is examined through an event study using the German Socioeconomic Panel (SOEP) comparing the job satisfaction of first-time parents who had their child before and after the 2007 Elterngeld reform. The Elterngeld reform introduced a paternity quota, reserving two months of paternity leave for fathers, also known as the "daddy months," to encourage fathers to take up parental leave. The event study examines the dynamic effects on job satisfaction from three years before to seven years after childbirth. To examine potential mechanisms, the study is replicated for housework satisfaction, childcare satisfaction, and time spent on work and domestic labor. The findings report no statistically significant results of the paternity quota on job satisfaction or housework satisfaction for either gender. Fathers exposed to the reform report an increase in childcare satisfaction of up to 2.4 points on a scale of 10 and a reduction of half an hour in hours spent on paid labor in the early postpartum years. These results suggest that paternity quotas do not shift the division of domestic labor nor improve job satisfaction. The findings imply that a paternity quota is not enough to shift gender roles in the domestic sphere, and larger societal change is needed to influence job satisfaction. A paternity quota serves as a starting point for normalizing fathers taking leave and participating in household labor.