Thursday, October 4, 2018

Parental Leave: Is There a Case for Government Action?

When government mandates or subsidizes parental leave it is considered government-supported leave.

Proponents of government-supported leave are skeptical about the private market's ability to provide adequate paid leave and believe that employees and employers face a collective action problem in obtaining or providing paid leave.

Negatively affects employment rates and wages; long leave times reduce the likelihood that workers return to the same employer; career interruptions due to parental leave can lead to detachment from work and human capital depreciation, especially with longer leave durations.

The difference between BLS and other national data sets and surveys is attributable to BLS's peculiar survey methods, which require paid leave to exist separately from "Sick leave, vacation, personal leave or short-term disability leave that is available to the employee." This means that when employees take paid leave for family reasons, it doesn't count if it could have been used for something else.

Unconventional benefit packages, like consolidated paid leave and unlimited paid leave plans allow employees to use paid leave for any reason, family or otherwise.

In Sweden only about 14 percent of men share paid leave equally with their partners, despite government subsidies providing bonuses and tax credits to encourage parents' equal division of paid leave.

Care leave policies differ from parental leave policies in that they are substantially longer and care leave benefits are paid at a flat rate instead of as a percentage of previous income.


https://www.cato.org/publications/policy-analysis/parental-leave-there-case-government-action#full

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