When Gender Trumps Skills: Employment Trajectories of Austrian Parents After Their First Birth

Increasing the labour market participation of mothers is often seen as a solution to address skill shortages in countries with long child-related career interruptions. However, little is known about the leave-taking behaviour of parents with higher and lower skill levels. This study addresses that gap by examining how employment trajectories after the transition to parenthood vary by gender and skill level in Austria, which has one of the longest parental leave entitlements globally. We focus on understanding whether skill differences shape leave-taking and labour market re-entry, and to what extent they explain the large and persistent gender gaps in parental employment. We use a new dataset that, for the first time, links Austrian administrative data on births and daily labour market activities (2009-2022) with tested skill scores from the OECD’s Programme for the International Assessment of Adult Competencies (PIAAC). Our main sample includes 5,130 Austrians born between 1942 and 1997. We focus on tested numeracy skills, which are strongly associated with employment and wages, offer a more precise measure of work-relevant skills than formal education, and account for important parts of the gender pay gap. Adopting a life-course perspective, we observe labour market patterns between the ages 20 and 70, and examine the three years before and after the birth of a first child to capture short- and medium-term dynamics. We find clear differences by skill level. Higher-skilled women tend to return to employment more quickly and are more likely to use educational leave to extend their parental leave. Lower-skilled mothers, by contrast, experience longer periods out of the labour force. Among fathers, skill gradients are present as well: higher-skilled men are more likely to take parental leave than their lower-skilled counterparts, though leave uptake remains very low in absolute terms. However, gender trumps skills. On average, mothers take 416 days of paid parental leave following the birth of their first child, while fathers take just nine days. Most mothers remain at home well beyond the period of paid leave, and part-time work is common upon return – regardless of skill level. Our findings suggest that policies aimed at increasing female labour market participation − particularly among the skilled − face structural constraints. In a context of demographic ageing and rising skill shortages, improving access to early childcare and encouraging more balanced leave-taking may be necessary to reduce gender gaps and make better use of existing skills across the workforce.