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ObjectiveThis study investigates the longitudinal association between paternity leave‐taking and multiple domains of young children's developmental outcomes and identifies the underlying mediating mechanisms through fathers' involvement, father–child closeness, and family dynamics.BackgroundSome Asian societies have recently initiated parental or paternity leave policies to encourage fathers' participation in childcare and raise fertility rates. However, little is known about whether and how this policy influences early childhood development in a mid‐to‐long‐term period from preschool to early primary school years.MethodsUsing two waves of data from the Singapore Longitudinal Early Development Study (SG‐LEADS), we conduct structural equation modeling to examine both the direct and indirect effects of paternity leave‐taking on children's academic and behavioral outcomes when they are 3–8 years old. Propensity score matching is adopted in sensitivity analyses, presenting that the effect of paternity leave is not due to selection.ResultsTaking 2 weeks or more of paternity leave is associated with fathers' increased involvement in childcare activities, strengthened father–child closeness, and enhanced family dynamics. Taking paternity leave has both direct and indirect effects on promoting children's academic achievements, whereas much of its impact on reducing children's behavior problems is through an indirect effect of improving family dynamics.ConclusionRelatively short paternity leave (2 weeks) could have cumulative effects on children's development from early to middle childhood, mainly through cohesive father–child and parental relationships. The study findings have policy implications for enhancing work–family reconciliation and promoting gender equality in society, especially in the Asian context.

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