Gendered parental leave policies among Fortune 500 companies

ABSTRACT

Due to the lack of a federal paid parental leave policy in the United States, access to leave for most US workers is dependent on whether their employer offers paid leave. Our research explores employer-based access to parental leave among Fortune 500 companies. We develop a classification of leave policies based on how policies differ for mothers and fathers: gender equal (equal periods of leave to mothers and fathers), gender modified (equal leave of 6 or more weeks with an additional 6–8 weeks for mothers), gender unequal (mothers offered 2 or more times longer leave than fathers), and gender-neutral gendering (policies that offer primary and secondary caregiver leave). We find that 72% of companies offer some paid parental leave, and the majority of Fortune 500 companies have paid parental leave policies that offer substantially more leave to mothers than to fathers. We also find that technology companies, larger companies, and companies headquartered in a state with paid family leave are more likely to offer paid parental leave. This research provides insight into the degree to which employer policies may contribute to gender inequality and has implications for employer-mediated inequalities in access to parental leave.

KEYWORDS:

• Parental leave
• employers
• Fortune 500
• policy
• gender equality

Acknowledgements

A previous version of this manuscript was presented at the 2019 annual meeting of the International Network on Leave Policies & Research. The authors would like to thank Amy L. Petts, Deborah Widiss, and the anonymous reviewers for their helpful feedback on previous drafts of the manuscript.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 We focus on industry, company size, and public policy context here as these are the characteristics that we have information on in our data.

2 This is defined as companies that are incorporated in the US, operate in the US, and file financial statements with a government agency (https://fortune.com/fortune500/2018/methodology/). Fortune also releases a Global 500 list that focuses on companies worldwide, but this list is not used as this study focuses exclusively on US companies.

3 Data from the Fortune 500 is lagged. Lists are published in May, but reflect data from the previous year (e.g., the 2018 list reflects data from late 2017/early 2018). Data collection began in early 2019 (prior to the release of the 2019 list). While it is possible that some policies were introduced in 2019, these policies are still relevant for an examination of parental leave policies among top companies, particularly because there is substantial similarity between years of the Fortune 500 (only 21 companies were different in the 2019 list compared to the 2018 list).

4 75% of the data we compiled is directly from the company, with the remaining 25% coming from news articles or other organizations. We controlled for data source in supplementary models, and results are identical when data source is accounted for.

5 We also considered company revenues (in millions of dollars) in supplementary models. However, number of employees and revenues were highly correlated (.72); when both were included in the same model, neither factor was associated with offering paid parental leave or type of leave policy (due to high correlation). Results are largely similar when revenues and number of employees are included in separate models.

6 There are three companies classified as gender modified that do not exactly meet these criteria. One provides 10 weeks leave for mothers and 6 weeks to other parents (a gap of 4 weeks instead of 6-8). Two companies provide 22 weeks to mothers and 12 to other parents (a gap of 10 weeks).

7 85% are classified as gender unequal low and 15% are classified as gender unequal high.

8 Comparisons between mothers and fathers were obtained using seemingly unrelated estimations and Wald tests.

9 This study focuses on employer-specific paid parental leave policies. These policies provide benefits to employees regardless of, and/or in addition to, any state-level paid family leave policy.

10 Additional analyses showed that company size was associated with nonresponse, with smaller companies being less likely to provide data on paid parental leave than larger companies. The likelihood of missing data did not vary by industry sector or being headquartered in a state with paid family leave.

Additional information

Notes on contributors

Gayle Kaufman

Gayle Kaufman is Nancy and Erwin Maddrey Professor of Sociology and Gender & Sexuality Studies at Davidson College. Her research interests include gender, work and family, with particular focus on parental leave and fatherhood. She is the author of Superdads: How Fathers Balance Work and Family in the twenty-first Century (2013, NYU Press) and Fixing Parental Leave: The Six Month Solution (2020, NYU Press).

Richard J. Petts

Richard J. Petts is a Professor of Sociology at Ball State University. His research focuses on family inequalities, including an emphasis on parental leave as a policy and practice that can reduce gender inequality and improve family well-being. His recent research has been published in Social Forces, Journal of Marriage and Family, Sex Roles, Journal of Social Policy, and Community, Work & Family.