Effects of Care Leave and Family Social Policy: Spotlight on the United States

Abstract

AbstractConsistent with Pope Francis's efforts to eradicate social exclusion, most countries in the world have already adopted care leave policies in an effort to reduce the conflict between being an employee and being a caregiver. Care leave policies allow workers time off for family or for self‐care. Historically, care leave policies such as maternity leave are viewed as an employee benefit akin to short‐term disability leave, providing job‐protected time off for new mothers. This study reviews the literature of the short‐ and long‐run economic and societal effects of care leave policies globally, with a specific focus on care leave policies in the United States. Care leave produces positive labor market and health outcomes, including increases in leave taking, improvement in replacement wages, improvements to profitability and employee morale, increases in female workforce participation and continuity, increases in birth weight, and decreases in infant mortality. Despite positive effects, labor market inequalities such as decreases in female labor market participation rates, gender wage gaps, and occupational segregation are often promoted by care leave policies. The conflicted findings in care leave research muddle the anticipated effects of paid care leave but allow room for alternative policy recommendations.