Agency Penalties From Taking Parental Leave for Women in Men-Dominated Occupations: Archival and Experimental Evidence

Organizations have started more progressively using and offering family benefits including parental leaves to address the issues of balancing work and family life. Although such leaves are fundamental for supporting, attracting, and retaining women, we examine whether such leaves may also inadvertently affect women’s careers in occupations that overly value masculine traits, unless managed carefully. Drawing on the literature on gender stereotypes (micro factors) and occupation gender type (macro factors), we argue that longer (vs. shorter) parental leaves negatively affect women’s work outcomes (i.e., annual income, salary recommendation, hireability, and leadership effectiveness) in men-dominated but not in women-dominated occupations because it lowers perceptions of women’s agency. We find support for our hypotheses across three studies in the Australian context with an archival data set and two experiments. Our work shows that men-dominated organizational structures reinforce traditional gender stereotypes, whereas such reinforcement does not happen in women-dominated organizational structures. Our research equips leaders and organizations with insights into the unintended negative consequences of parental leave for women. This understanding serves as a crucial first step in developing strategies and programs to mitigate these effects, thereby supporting women in men-dominated occupations and fostering more inclusive and healthy workplaces.