In a report published in the American Journal for Public Health, there was no significant difference in the number of women taking maternity leave in the U.S. from 1994 to 2015.Even though paid maternity leave is available for many women across the country, some feel they are unable to take advantage of these programs. This site uses Akismet to reduce spam. An entry-level employee makes around $8 per hour, meaning that they are generating about $13 per hour by being there. But we can't ignore the downsides either: Lower pay, stingier promotions, and a potential employer favoritism toward the childless. This might cause the company to fall behind competitors and close down. The United States is the only developed nation that does not mandate paid maternity leave. We often hear the United States is the only "major," "civilized," or "Western" country without government-provided, paid maternity leave. What is the ideal paid maternity leave? Both. If this happened, the employer would start losing employees who were not interested in maternity leave to other employers since the salaries would be higher there. While illegal, there would also be an incentive to not hire young women since that would make it more likely that paying for maternity leave would be needed. With all employers being forced to offer paid maternity leave, employees would not have the choice of selecting a business that provided a longer leave time or one with a shorter leave time but a higher salary. • ( Log Out / Many employees feel that their employer could afford to double their salary or greatly increase their benefits and still make plenty of money. Cloudflare Ray ID: 5f138f8c7d8dcc87 Barack Obama has promised to expand the unpaid Family and Medical Leave Act so that it covers more workers, and also to offer funding to states to encourage them to adopt paid family leave programs. Another way to prevent getting this page in the future is to use Privacy Pass. The employer cuts profits: Another option would be for the employer to keep salaries competitive, but reduce their profits to pay for maternity leave. According to a recent study done by Harvard and McGill universities, 169 of the 173 countries studied offer some form of guaranteed paid maternity or parental leave. If only a few employees used leave, for example, two employees per year out of a 100 person company, salaries would be reduced very little and there would not be much of an effect. If there were a requirement that employers provided 2 years of paid leave per child, for example, it is likely that most women would take the full two years off, losing a great deal of experience. Companies like Facebook and Google now offer generous packages like baby cash bonuses and several months’ leave for both moms and dads, but those policies are the exceptions. If you look into the books a bit, however, you’ll find that employees are taking home the lion’s share of the wealth they create through their work. Tax advice should be sought from a CPA. Learn how your comment data is processed. This would have a significant effect on their future pay. Paid maternity and paternity leave are vital steps in keeping women in the workforce, developing workplace acceptance for involved dads, and closing the gender pay gap. Change ), You are commenting using your Facebook account. Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. The need for paid maternity leave is often brought up during election cycles. In California, for example, the paid leave law doubled typical maternity leaves to six to seven weeks, according to a study by three researchers, … If taxes were progressive, such that many individuals were paying little or no taxes, the burden would be shifted to a smaller subset of the population. The best-case scenario would be if companies who simply decided to offer paid maternity leave as a benefit found that they could attract better employees, who are both loyal and more productive than the average employee. This review will evaluate the evidence for paid parental leave and assess its potential to improve a range of health and economic outcomes simultaneously. One of the very first posts on my own blog concerned paid family leave, and though at the time, I promised to get back to it, I never did. Resentment may cause a movement to require paid leave without maternity to be provided, like paid sabbaticals. Similarly, a study of paid maternity leave in OECD countries notes that an added week of paid maternity leave raises labor-force participation rates … Please send to. It's worth noting that if you look at other nations, particularlyEuropean countries, that is almost never the way it's arranged. This can be done, but requires the employer cut the amount paid to employees in salary, reduces their profit, or do a combination of the two.