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Fathers are being urged to take more time off work to make it easier for mothers to go back to work.
A report by the Organisation for Economic Co-operation and Development, published just before Christmas as the final in a series of "Babies and Bosses" reports, says work-life balance policies should aim for gender equity as well as higher incomes and the best interests of children. In particular, it urges all countries to aim at "reducing the differences in the use of parental leave between men and women".
New Zealand's current paid parental leave is taken up almost entirely by women. Although mothers can legally transfer part or all of their 14-week entitlement to their partners, only 1 per cent do so.
At the other extreme, the report praises Iceland, which introduced equal paid leave for both parents in 2001: three months for mothers, three months for fathers, and another three months which both parents can share.
Both parents are paid 80 per cent of their previous earnings while on leave, compared with a cap in New Zealand of $391 a week (45 per cent of average earnings).
Icelandic fathers now use 35 per cent of all paid parental leave days, up from 3 per cent before the change.
"As long as women rather than men take advantage of care provisions, there are employers who will perceive women as less committed to their careers than men, and are therefore less likely to invest in female career opportunities, depressing female earnings," the report says.
"However, if fathers also take leave, in principle it becomes possible to ensure that one or other parent can spend time with their young children without such deleterious effects.
"Increasing the amount of parental leave taken by fathers can also reduce the demand for [expensive] formal care arrangements for very young children."