Maternity Leave
Running head: Paid Maternity Leave
Paid Maternity Leave: Wage Disparity
Baker College
BUS 609
Ana Couto
Abstract
Maternity Leave Policy in the US falls behind other industrialized countries in regards to compensation, duration and employer support. Despite the historical efforts from feminists to achieve equality in the workplace at the expense of forgoing maternity leave privileges, women are still suffering from wage inequality in the workplace. Studies demonstrate that maternity leave policies do not widen the wage disparity gap as long as a wage structure exists that will achieve egalitarian income distribution. As a result, wage disparity can be minimized and maternity leave can be improved if we impose a tax on men to subsidize both income for new mother’s while on leave and the cost to employers who have to replace those employees with temporary workers.
Maternity Leave in the United States, is perhaps the worse policy amongst all other industrialized countries. The average maternity leave in other peer countries is 16 weeks with pay and with job security upon return (Kamerman & Gatenio, 2002). In the United States there are no national paid policies for maternity leave and many women refrain from taking leave because of financial constraints, lack of employer support, and a fear of losing opportunities for promotions. A study published in the Academy of Management Journal (January 2000) compared 523 managerial-level level employees who have taken leave within two years versus employees who have not and found the following results for leave-takers: 18% less likely to have been promoted, on average 8% lower pay-raise and lower performance ratings from their employers (“Family Leave,” 2005). The fact that the burden falls almost entirely on women in taking care of their newborns, they become more costly to employers since it is more likely that they will be taking leave. According to the Department of labor, almost 46
Paid Maternity Leave: Wage Disparity
Baker College
BUS 609
Ana Couto
Abstract
Maternity Leave Policy in the US falls behind other industrialized countries in regards to compensation, duration and employer support. Despite the historical efforts from feminists to achieve equality in the workplace at the expense of forgoing maternity leave privileges, women are still suffering from wage inequality in the workplace. Studies demonstrate that maternity leave policies do not widen the wage disparity gap as long as a wage structure exists that will achieve egalitarian income distribution. As a result, wage disparity can be minimized and maternity leave can be improved if we impose a tax on men to subsidize both income for new mother’s while on leave and the cost to employers who have to replace those employees with temporary workers.
Maternity Leave in the United States, is perhaps the worse policy amongst all other industrialized countries. The average maternity leave in other peer countries is 16 weeks with pay and with job security upon return (Kamerman & Gatenio, 2002). In the United States there are no national paid policies for maternity leave and many women refrain from taking leave because of financial constraints, lack of employer support, and a fear of losing opportunities for promotions. A study published in the Academy of Management Journal (January 2000) compared 523 managerial-level level employees who have taken leave within two years versus employees who have not and found the following results for leave-takers: 18% less likely to have been promoted, on average 8% lower pay-raise and lower performance ratings from their employers (“Family Leave,” 2005). The fact that the burden falls almost entirely on women in taking care of their newborns, they become more costly to employers since it is more likely that they will be taking leave. According to the Department of labor, almost 46
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