Parental leave laws are typically seen as crucial measures for increasing maternal employment and balancing work and family life or the proportion of time parents spend with their families and at the workplace. Women continue to perform more badly than males globally on the professional ladder. The underrepresentation of women in CEO positions and across the board in corporations in most nations is exceptionally evident (Jacobs & Bahn, 2019). Top academic positions and positions in higher- and medium-level management also exhibit the tendency. But in today’s competitive world, businesses need to use cutting-edge tactics to draw in and keep the most talented individuals (Nandi et al., 2018). Supporting women to stay in the workforce and realize their full potential requires policies incorporating women into the workplace. The parental leave framework guarantees the involvement of women, and influential proponents of paid family leave legislation are exerting considerable pressure on businesses to endorse and enact paid parental leave programs. More than one in three American firms provide paid maternity leave. Employers are becoming progressively aware that doing this is financially prudent and part of their corporate social obligation.
Effects of Parental Leave Policies On Women’s Participation in The Workforce.
From a macroeconomic theoretical approach, when the demographics most inclined to have children and take such leave are approved for parental leave and return to work, the parental leave policy is expected to boost employment opportunities (Jacobs & Bahn, 2019). Consequently, the opportunity cost of working and the cost of raising children are both reduced. Additionally, it can increase the likelihood of getting pregnant. The need for labour may also decline, but only if parental leave is expensive for employers. For instance, labour demand effects are relatively insignificant in Europe, where parental leave is publicly financed, and parental leave is anticipated to have a net positive impact on female employment rates (Del Rey et al., 2021). Parental leave advocates emphasize that to obtain benefits and job protection under most parental leave initiatives, the individual receiving them must be employed before giving birth (Petts et al., 2022). The likelihood of finding employment for women who take parental leave increases because of the assurance that the new parent will not be dismissed by the employer while on protected leave and can resume their prior position.
Furthermore, theoretically, it is anticipated that mothers’ rates of returning to work after giving birth will rise due to job-protected leave (Nandi et al., 2018). The predicted return rate increases as the authorized leave term lengthens, allowing mothers who take longer breaks to spend more time with their children to eventually return to their old workplace (Del Rey et al., 2021). Parental leave allows certain working women to stay out of the workforce for more prolonged durations following childbirth than they could have otherwise done, which may contribute to a relative drop in mother employment. As a result, this may lead to increased human capital depreciation and disconnection from the former employer and the labour market (Jacobs & Bahn, 2019). These negative consequences are anticipated to be significantly bigger for occupations requiring a high level of ability or a lot of technology. Female representation in high-level positions that demand whole-time, full-year, and career-long dedication may be diminished due to extended absence or part-time work after the resumption of employment (March of Dimes.org, 2020). In light of this, mothers may receive lesser pay, fewer promotions, and low-track jobs after giving birth. If employers anticipate that women will benefit from these regulations, they may statistically discriminate against them.
Benefits of Paid Parental Leave for Society, The Population, And General Public Health.
Paid parental leave has several advantages for both families and businesses. Paid parental leave has many benefits, including better health outcomes for expectant women and newborns, lower costs associated with employee turnover, happier and more engaged workers, and enhanced earnings and efficiency (Del Rey et al., 2021). Parental leave policies are also essential to improve women’s attachment to and engagement in the workforce. Women, mainly working mothers, are crucial for completing the vacant positions; they need help to continue working and raising their families. Policies governing paid parental leave are a good place to start. Parental leave positively impacts the health of each family member and the family as a whole (Jacobs & Bahn, 2019). Paid maternity leave positively impacts maternal health, father caring, child mortality, vaccination rates, and exclusive breastfeeding rates. Increased father-infant bonding, equal home labour distribution, greater child involvement, and better child health and development outcomes are all benefits achieved by paternity leave (Nandi et al., 2018). Parental leave also provides significant economic advantages, such as paid maternity leave, which helps women stay in the job longer after giving birth and boosts female labour force participation (Del Rey et al., 2021). Parents are less likely to rely on public assistance benefits when supported by employment advantages like paid family leave.
Paid maternity leave improves employee retention and lowers turnover, which significantly lowers the cost of hiring new employees for organizations.
Changes That the United States Needs to Implement to Help More Women Participate in The Workforce
Women frequently have no other option but to resign from their employment to care for their babies without an organizational parental leave policy, particularly if they continue working in their homes for an extended period. According to data from the US National Longitudinal Study of Youth, mothers who benefit from paid parental leave are 69% more likely to return to their jobs than mothers who do not (Petts et al., 2022). A woman’s professional advancement is substantially impacted by leaving a role as they frequently have to return to the workforce in a new position. Despite having more outstanding education than their male coworkers, fewer women hold high management roles across US firms; instead, they tend to work at entry-level positions (March of Dimes.org, 2020). The problem cannot be solved through education. As a result, parental leave, especially paid leave, allows parents to balance their family’s requirements and jobs, allowing them to return to the workforce when ready to succeed (Nandi et al., 2018). Additionally, it is evident that a shift toward the improvement of childcare and early education policies in the United States, as well as a robust internal paid leave policy for family leave, might be instrumental in halting the decline in American women’s labour force participation and return it to the level of most other developed nations.
In conclusion, Parental leave policies have typically been successful at encouraging maternal employment and enhancing employees’ work-family balance. An extended parental leave of more than one year increases the mother’s career costs, according to international experience. At the same time, parental leave lengths that are short and short provide beneficial results. Throughout maternity leave, career costs increase, and they differ depending on educational level. Governments and businesses should be aware of these expenses, implement procedures and policies to help lower them while on leave, and offer incentives for women to start working earlier.
References
Del Rey, E., Kyriacou, A., & Silva, J. I. (2021). Maternity leave and female labour force participation: evidence from 159 countries. Journal of Population Economics, 34, 803-824. https://link.springer.com/article/10.1007/s00148-020-00806-1
Jacobs, E., & Bahn, K. (2019). Women’s History Month: US women’s labour force participation. Washington Center for Equitable Growth. Retrieved from https://equitablegrowth. Org/womens-history-month-us-womens-labor-forceparticipation. https://equitablegrowth.org/womens-history-month-u-s-womens-labor-force-participation/#:~:text=It%20seems%20clear%20that%20a,that%20most%20other%20developed%20countries
Klasen, S. (2019). What explains uneven female labour force participation levels and trends in developing countries? The World Bank Research Observer, 34(2), 161-197. https://doi.org/10.1093/wbro/lkz005
March of Dimes (2020). New Study Reveals Paid Family Leave Policies Lead to 20% Fewer Women Leaving the Workforce. marchofdimes.org. https://www.marchofdimes.org/about/news/new-study-reveals-paid-family-leave-policies-lead-to-20-fewer-women-leaving-workforce
Nandi, A., Jahagirdar, D., Dimitris, M. C., Labrecque, J. A., Strumpf, E. C., Kaufman, J. S., … & Heymann, S. J. (2018). The impact of parental and medical leave policies on socioeconomic and health outcomes in OECD countries: a systematic review of the empirical literature. The Milbank Quarterly, 96(3), 434-471. https://doi.org/10.1111/1468-0009.12340
Petts, R. J., Mize, T. D., & Kaufman, G. (2022). Organizational policies, workplace culture, and perceived job commitment of mothers and fathers who take parental leave. Social science research, 103, 102651. https://doi.org/10.1016/j.ssresearch.2021.102651
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