Tuesday, May 26, 2015

The New York Times says paid parental leave policies can hurt working woman

From AEI.
"It seems likely that a key element of the Democratic economic agenda going forward — and a key part of agenda of the party’s presidential nominee — will be advocacy of “family friendly” polices such as paid parental leave. Here is an example from the Hillary Clinton-friendly Center for American Progress’s “Report of the Commission on Inclusive Prosperity”:
In particular, paid parental leave, paid caregiving leave, paid sick days, paid vacation, protections for part-time workers, and workplace flexibility are important to increase the inclusiveness of advanced-market economies. … The United States is the only advanced economy that does not guarantee paid maternity leave and one of only a handful that does not guarantee paid paternity leave. Only 12 percent of U.S. workers have access to paid parental leave through their employer, and rates are significantly higher for those with the highest earnings. Approximately 60 percent of workers have access to unpaid, job-protected leave through the Family and Medical Leave Act, or FMLA.
But not so fast, says a new analysis by the New York Times. From “When Family-Friendly Policies Backfire” by Claire Cain Miller:
In Chile, a law requires employers to provide working mothers with child care. One result? Women are paid less. In Spain, a policy to give parents of young children the right to work part-time has led to a decline in full­-time, stable jobs available to all women — even those who are not mothers. Elsewhere in Europe, generous maternity leaves have meant that women are much less likely than men to become managers or achieve other high-powered positions at work. Family-­friendly policies can help parents balance jobs and responsibilities at home, and go a long way toward making it possible for women with children to remain in the work force. But these policies often have unintended consequences. They can end up discouraging employers from hiring women in the first place, because they fear women will leave for long periods or use expensive benefits. … These findings are consistent with previous research by Francine Blau and Lawrence Kahn, economists at Cornell. In a study of 22 countries, they found that generous family-friendly policies like long maternity leaves and part-time work protections in Europe made it possible for more women to work — but that they were more likely to be in dead-end jobs and less likely to be managers.
Economists call these “unintended consequences.” And what’s more, according to the piece, “There is no simple way to prevent family-friendly policies from backfiring, researchers say.” One option, though, would be to make these policies gender neutral and somehow nudge men to take as much advantage of them as women do. Looking forward to seeing what policies are meant to make that happen."

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