the economic benefits of paid leave: fact sheet

Art. Paid leaves longer than 1 year, however, could have adverse consequences for mothers’ long-term career opportunities. The Geography of Intergenerational Mobility in the United States,” The Quarterly Journal of Economics 129 (4) (2014): 1553–1623, available at https://doi.org/10.1093/qje/qju022; Gary Solon, “Intergenerational Mobility in the Labor Market.” In Orley Ashenfelter and David Card, eds., Handbook of Labor Economics (Amsterdam: Elsevier, 1999), pp.1761–1800, available at https://doi.org/10.1016/S1573-4463(99)03010-2.

California became the first state to enact legislation in 2004, followed by New Jersey (in 2009), Rhode Island (in 2014), and New York (in 2018). Paid parental leave at the state and local level improves child health and development and maternal well-being while causing minimal negative impacts on employers, and paid leave at the federal level could help children from all backgrounds, curb the growth in inequality, and boost long-term U.S. economic growth and stability.

The positive impact of paid family leave does not stop with either workers’ families or their employers. This essay is part of Vision 2020: Evidence for a stronger economy, a compilation of 21 essays presenting innovative, evidence-based, and concrete ideas to shape the 2020 policy debate. Thus, while there is no research identifying the “optimal” duration of leave precisely, it appears that programs of up to six months in length are likely to generate benefits for families without significant costs to women’s careers. 04/2018 (NHH Dept. The Federal Employees Paid Parental Leave Act won’t require additional spending, but it will make a difference in the lives of millions of federal employees – including 61,000 New Yorkers - who should not have to choose between a paycheck and the most important task a human being can take on: raising a child.”, “I'm proud to cosponsor the Federal Employee Paid Parental Leave Act, which will prevent our federal employees from having to choose between caring for their families and keeping their jobs, including tens of thousands of federal employees who I represent in Maryland's Fifth District," said Congressman Hoyer (D-MD). There has been substantial policy action for paid family leave at the state and local level. If you’re a smaller organization considering providing employees with paid parental leave benefits, you may be able to compromise by providing partial wage replacement, for a shorter period of time. What does the research tell us about how best to design paid leave policies? The Joint Economic Committee Democratic staff recently produced a fact sheet on the economic benefits of paid parental leave policies that is available here.

"As President Obama’s recent executive action recognized, it is time to provide our federal workforce with modern paid parental leave benefits.

3 By failing to provide paid parental leave, the federal government lags behind both the private sector, as 53 percent of private-sector employers provide some form of paid parental leave, as do most industrialized nations around the world. 18 “The federal government already reimburses its contractors for the cost of paid parental leave.

Based on the evidence so far, there is a need for at least 12 weeks of paid maternity leave for all employed women. Sarah Bana, Kelly Bedard, and Maya Rossin-Slater, “Trends and Disparities in Leave Use under California’s Paid Family Leave Program: New Evidence from Administrative Data,” AEA Papers and Proceedings 108 (2018): 388–91, available at http://www.aeaweb.org/articles?id=10.1257/pandp.20181113.

Breastfeeding itself confers several physical and mental health benefits for the infant, including but not limited to strengthening immunity and enhancing mother-infant bonding.

President Obama recently backed the legislation in his push for changes to leave policy – a message that was also highlighted in the State of the Union Address. Bana, Bedard, and Rossin-Slater, “The Impacts of Paid Family Leave Benefits: Regression Kink Evidence from Administrative Data.”. The Families First Coronavirus Response Act (FFCRA or Act) requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The leave-taking rate of mothers with infants nearly doubled after paid family leave became available, while fathers were 50 percent more likely to take leave.7 This increase in leave-taking indicates that access causes new parents to take more time away from work following the birth of a new child than they would in the absence of the policy. 23 See California Employment Development Department, “Paid Family Leave (PFL) Program Statistics” (n.d), available at https://www.edd.ca.gov/about_edd/pdf/qspfl_PFL_Program_Statistics.pdf. “You can count on one hand the number of countries that don’t provide paid leave for the birth of a child, and the United States is part of the club,” said Congresswoman Carolyn B. Maloney (D-NY). The likelihood that a mother will follow the WHO's recommendation of six months of exclusive breastfeeding is greater with appropriate duration and availability of paid maternity leave.

The Joint Economic Committee Democratic staff recently produced a fact sheet on the economic benefits of paid parental leave policies that is available here. 15 Kelly Bedard and Maya Rossin-Slater, “The Economic and Social Impacts of Paid Family Leave in California: Report for the California Employment Development Department.” Technical Report (2016), available at https://www.dol.gov/wb/media/CA_Final_Report_2015_Final_Report.pdf. —Maya Rossin-Slater is an assistant professor of health policy in the Department of Medicine at Stanford University School of Medicine. Congress must answer the President’s call to end the ‘tug of war’ people feel between work and home, and create real, lasting security for the middle class through family-friendly workplace policies.”, “The federal government needs to take the lead in providing family friendly working environments for new parents.

An evidence-based review published in the Harvard Review of Psychiatry earlier this week, which was authored by my team and I, shows that paid maternity leave is linked with significant physical and mental health benefits for mothers as well as their children. Finally, a growing body of evidence underscores that rising economic inequality and persistent intergenerational transmission of low socioeconomic status in the United States are perpetuated through disparities in early childhood circumstances.26 The current research suggests that a federal paid family leave policy could level the playing field for children from all backgrounds and help curb the growth in inequality and boost long-term U.S. economic growth and stability. As a result, federal agencies can't compete with the private sector for talented younger workers who, if electing federal employment, would have to use accrued vacation or sick time, which may be only a few days, or forgo pay in order to take time off after the birth of a child. Third, the current paid leave programs at the state and local level in the United States have positive impacts on child health and development, as well as maternal well-being.

But even those who do not change their leave-taking behavior may benefit by receiving partial wage replacement during periods of leave that would have otherwise been unpaid. “Employee Benefits Survey,” available at https://www.bls.gov/ncs/ebs/benefits/2018/ownership/civilian/table32a.htm (last accessed September 17, 2019). The Federal Employees Paid Parental Leave Act institutes common-sense, paid leave policies that reflect the current realities of our labor force. More.

Why are so many people drawn to conspiracy theories in times of crisis? 1 The Department of Labor’s (Department) Wage and Hour Division (WHD) administers and enforces the new law’s paid leave requirements. Anna Aizer and Janet Currie, “The Intergenerational Transmission of Inequality: Maternal Disadvantage and Health at Birth,” Science 344 (6186) (2014): 856–861, available at https://science.sciencemag.org/content/344/6186/856; Janet Currie, “Inequality at Birth: Some Causes and Consequences,” The American Economic Review 101 (3) (2011): 1–22, available at https://www.aeaweb.org/articles?id=10.1257/aer.101.3.1; Raj Chetty and others, “Where is the Land of Opportunity? That research posits that better-paying firms may have cultures that are more conducive to leave-taking, suggesting that changing firm behavior and norms may be important for encouraging the use of leave more broadly. We also briefly discuss how paid family leave may relate to the growth in economic inequality in America and whether a federal policy could help curb this trend. Get the help you need from a therapist near you–a FREE service from Psychology Today. Aline Butikofer, Julie Riise, and Meghan Skira, “The Impact of Paid Maternity Leave on Maternal Health.” Discussion Paper No. Yet the availability of paid family leave, particularly when job protection is available, may reduce the probability that new parents quit their jobs upon the birth of a child. “You can count on one hand the number of countries that don’t provide paid leave for the birth of a child, and the United States is part of the club,” said Congresswoman Carolyn B. Maloney (D-NY). Fax: 212-860-0704Hours: It has broader implications for the country’s economy as well as government spending. Because paid leave increases the time parents spend away from work, it could lead to a loss of job-specific skills and make re-entry into the labor market more difficult. Fax: 212-860-0704Hours:

Pedro Carneiro, Katrine Løken, and Kjell Salvanes, “A Flying Start: Maternity Leave Benefits and Long Run Outcomes of Children,” Journal of Political Economy 123 (2) (2015): 365–412, available at https://doi.org/10.1086/679627.

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