http://www.nytimes.com/2015/02/01/upshot/the-economic-benefits-of-paid-parental-leave.html?abt=0002&abg=1
The article discusses President Obama's push for paid leave for new parents and for people caring for ailing relatives to become national policy. Obama said this policy would help increase the number of women in the work force and help middle-class families earn stable incomes. Opponents of paid leave say it is an economic burden that can be expensive for businesses which do not need more mandates from the government on how to operate their enterprises.
The article continues by providing results from three states- California, Rhode Island, and New Jersey- that already have operational paid leave programs. Economists have found that paid leave raises the probability that mothers return to employment later, and then work more hours and earn higher wages. They also found that more people take time off, particularly low-income parents who may have taken no leave or dropped out of the work force after the birth.
The article concludes by saying that a paid leave law helps, but that it is not enough. The article advocates for changes in public awareness and workplace culture.
I believe that paid leave for new parents and for people caring for ailing relatives goes beyond being economically beneficial. Do you think paid leave for new parents and people caring for ailing relatives is economically beneficial?
6 comments:
Paid leave I believe will promote happiness and development in Children's live in the early childhood stages. In Scandinavian countries such as Norway and Sweden the mother gets up to 6 months paid leave while the father gets up to an additional six months upon child birth. These countries are usually ranked among the happiest countries in the world and I believe this has a lot to do with it.
i also believe paid parental leave is a great push to workplace gender equality and a more efficient working environment. As fathers have the quality time to contribute to their child development, they will more likely satisfy with their family life, thus, go to work with better mood and generate greater output.
I agree with the above comments. I have always pondered about the "American Culture" and this article pretty much sums it up. Having something as important and cultural as family being looked at as a way to economically benefit the country shows how the US really runs on money. We can't stop people from having children, just like we can't stop people from not buying insurance. It is difficult or even impossible for a family to survive on one income. The law may help, but the view that profit is everything and women preventing profit must change. In other words, maybe we should be looking at the cultural benefits, instead of the economical.
I agree with the above comments. The reason i think this is a big debate in economics is because of efficiency idea. Economically in the short run it not efficient to give women that long of paid leave, but i feel that its important to look at the long run. Companies would save money because they would not have to hire and train new people which is costly and takes time. Plus when hiring new people they wont necessarily be efficient when they start it could take time.
"There must also be changes in public awareness and workplace culture."
This quote seems almost unnecessary. Obviously, for the policy to pass/last, this change is needed; thus it seems like it should be a lot more than a note on the end. I also have to agree with Matthew about the Scandinavian countries; there seem to be some hard-to-measure benefits of such a policy. All in all, good policy -- hard to implement.
I agree with what has been said above, in comparison to other countries, the US maternity leave is not enough and it might contribute a lot more benefit by creating a law or policy. It is interesting to hear that post-maternity leave employees have worked longer hours and achieved greater success. It seems that after having a baby, it might increase your motivation level and give you more of an incentive to continue working hard and earning more.
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