Sweden gives us the most impressive example of an economic case for paternity leave showing clearly how financial incentives changed parenting. In the 1970s, Sweden was not all that different to Japan today. In 1974, only 0,5% of the dads took parental leave. Increasing the months several times up to 15 months, the percentage of paternal leave rose to 6% in 1995. As Bengt Westerberg, Sweden's deputy prime minister in 1995, told the New York Times:
Society is a mirror of the family. … The only way to achieve equality in society is to achieve equality in the home. Getting fathers to share the parental leave is an essential part of that.
As a consequence, Sweden introduced a program - "Daddy Leave" - in 1995 that barred couples from transferring parental leave to one another. In fact, they lost a month of subsidized leave, if fathers took less than a month (since 2002: two months!) of parental leave. Also, the compensation was as high as 90 % of the wages, which made it very hard for fathers to choose work instead of parenting. This and a number of additional smaller improvements, like e.g. flexible-hours policies, resulted in today's numbers. Today, nine in ten Swedish fathers take leave - on average of three to four months each - accounting for a quarter of total leave time taken.
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