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The contents of the Parental leave economics page were merged into Parental leave on May 2015 and it now redirects there. For the contribution history and old versions of the merged article please see its history.

The contents of the Parental leave economics page were merged into Family and Medical Leave Act of 1993 on May 2015. For the contribution history and old versions of the merged article please see its history.

This article was the subject of an educational assignment in Spring 2015. Further details are available on the course page.

Hi! I am interested in adding more information to this article about the economic models and effects involved with parental leave policies. I would like to consolidate this article with Parental leave as a new section in that article. My plan is below -- please contact me with concerns / suggestions / ways to improve!

Outline of new section to add within this article, before consolidating with Parental leave:

Economic models

1 Benefits of universal, paid parental leave

1.1 Capabilities approach, i.e., sets a minimum "threshold" so parents (working or not) have the capability to carry, birth, and care for a baby.
1.2 Equalizing gender pay gap and household labor inequality

1.3 Financial effects:

1.3.a Effects on poverty: care of infants is available (rather than parent/s returning immediately to work), supporting dual-income families (increasingly the norm) ^[1]
1.3.b Effects on labor market: Incentivizes labor market attachment for women both before and after birth, affecting GDP and national productivity as well as household income ^{[2] [3] [4]}
1.3.c Effects on population growth and labor force: Incentivizes childbirth, critical if workforce aging. Children can be considered a public good, particularly for countries with Sub-replacement fertility ^{[5] [6]}

2 Critique of mandated paid leave:

2.1 Will lead to statistical discrimination against hiring women of child-bearing years ^{[7] [8]}
2.2 Long maternal leaves could contribute to deteriorating wages for women and industry segregation by gender, e.g., the motherhood penalty ^[9]
2.3 If privately funded (i.e., corporations mandated to absorb the cost of paid parental time off as part of employee benefit), will be too great a financial burden for smaller firms.
2.3 If publicly funded (i.e., transferred directly to workers on leave, like unemployment insurance), will require raising new revenue, for instance through taxes. Melody.waring ( talk) 22:15, 1 May 2015 (UTC) reply