Supervisors: Guðný Björk Eydal and Ingólfur V. Gíslason Equal length of parental leave entitlements for both parents and a well established system of child care services in Iceland Ásdís A. Arnalds PhD student Faculty of Social Work University of Iceland Supervisors: Guðný Björk Eydal and Ingólfur V. Gíslason

Outline of presentation The law on paid parental leave from 2000 The availability of day-care Policy changes due to the financial crisis Parental leave use before and after the crisis

Act on maternity/paternity leave

The aim of the Act on maternity/paternity leave from the year 2000 “To ensure children care from both parents and to enable both men and women to co-ordinate work and family life”

Entitlements in 2000 Payment Age 0-18 months Mother 3 months (later changed to both parents) 80% of previous salaries/ universal payments for non-working parents Father 3 months Same Mother or father 3 months Age before 8 years Mother 13 weeks Unpaid Father 13 weeks

The availability of day-care

Day-care In Iceland it is common for children to be offered to start preschool around the age of two.

The care-gap As the parental leave period is only 9 months, a “care-gap” exists in the period from the end of parental leave until children start preschool. Research shows that just over half of parents bridge the gap by making use of private family day care (dagmamma). The municipalities subsidize the family day care service after children have reached the age of nine months (Eydal, 2008; Ingólfsdóttir & Gíslason, 2016). Mothers more often than fathers have lengthened the parental leave period by being on part-time leave in order to bridge the care-gap (Eydal, 2008; Ingólfsdóttir & Gíslason, 2016). It has been argued that the care gap “undermines the gender equality ambitions of the parental leave system” (Gislason, 2012: 34).

Policy changes due to the crisis that hit ICELAND IN October 2008

Changes made to the law on parental leave Period in which parents can use the leave Percentage of previous earnings Cap on benefits 2000-2003 18 months 80% No cap 2004-2005 480 thousand ISK 2006-2008 504 – 536 thousand ISK 2009 3 years Until 1/7: 400 thousand ISK After 1/7: 350 thousand ISK 2010-2012 80% of the first 200 thousand ISK – 75% of rest 300 thousand ISK 2013 2 years 350 thousand ISK 2014-2016 370 thousand ISK 2016-2017 After 15/10: 500 thousand ISK -Those with salaried earnings below the ceiling weren’t even secured 80% of their income while on leave. They received 80% of the first 200 thousand and then 75% of the rest. The extension of the leave period was related to the government’s aim that the cuts would be temporary. This gave parents an opportunity to postpone using the leave until the country was in a better financial state.

The percentage of parents whose earnings while on parental leave were affected by the ceiling on payments 2006 2007 2008 2009 2010 2011 2012 2013 Fathers 3.6% 6.0% 8.3% 30.8% 45.0% 43.8% 47.0% 44.2% Mothers 0.3% 1.2% 1.9% 10.4% 17.9% 17.1% 21.2% 18.3% Source: Parental leave fund

Parental leave use before and after the crisis

Average number of parental leave days used by mothers and fathers *Figures for 2014 and 2015 are preliminary Source: Parental leave fund, n.d.

Percentage of total leave period used by fathers in the Nordic countries Source: NOSOSCO, n.d.

Lessons learned Fathers penalty: If the ceiling is too low the fathers take up is influenced, thus their take up is still more vulnerable compared to mothers Mothers penalty: The care gap between paid parental leave and pre-school is mainly bridged by mothers – hence the care gap is in contrast with the aim of the law

For further information on the Icelandic policy on paid parental leave and its outcomes see findings and publications from the project Childcare and labour market participation of parents of children under the age of 3 lead by Guðný Björk Eydal and Ingólfur V. Gíslason See for example: Arnalds, Á. A., Eydal, G. B., & Gíslason, I. V. (2013). Equal rights to paid parental leave and caring fathers- The case of Iceland. Stjornmal og Stjornsysla, 9(2), 323–344. Retrieved from http://www.irpa.is/article/viewFile/1211/pdf_288 Eydal, G. B. (2008). Policies promoting care from both parents - The case of Iceland. In G. B. Eydal & I. V. Gíslason (Eds.), Equal rights to earn and care - parental leave in Iceland (pp. 111–148). Reykjavík: Félagsvisindastofnun Háskóla Íslands.

Thank you Thanks to Ingólfur V. Gíslason, associate professor and Guðný Björk Eydal for co-operation, advice and information