Career Consequences of Taking Parental Leave

This study investigates the consequences of taking parental leave, for both men and women, on promotions received in the year following the leave. Using unique longitudinal data from the Canadian Workplace & Employee Survey (WES) collected from both employees and their workplaces, it finds that in an earlier cohort (2001-2002), women were 14-percentage points more likely to receive a promotion after returning from a parental leave compared to men who also went on parental leave. We speculate that men pay a heavier penalty because taking parental leave does not fit in with their gender-assigned role within organizations. In a later cohort (2003-2004) this effect becomes statistically insignificant and this change is attributed to a change in public policy that allows people to take a much longer parental leave. These findings emphasize the need for organizations to create a "level playing field" by creating a culture within which all employees would feel welcome to take advantage of work-life balance benefits.