Women who take paid leave often end up choosing to be stay-at-home moms.
By Robin Smith, Patriot Post, Nov. 18, 2019
Yeah, that motherhood thing just can’t be tolerated! So, what happened?
An analysis of tax and employment data from 2001 and 2015 by economists of the University of Utah, the University of Michigan, Middlebury College, and Chicago’s Federal Reserve reviewed the impact of the Golden State paid leave law launched in 2004. The state program uses a payroll tax aimed at encouraging women to return to work following a window of time receiving part of their salary while nurturing their newborn child at home. Both parents are permitted to take up to six weeks of paid leave.
Yet this payment to first-time mothers didn’t prevent a 7% reduction in the employment rates of these women. When these women were permitted to remain home, they ultimately decided to take themselves out of the workplace, as demonstrated by an overall reduction in wages paid to the aggregate of first-time mothers by $24,000 that did not occur to men who took advantage of the law but went back to work. Men chose to return to work, if they took time off, as evidenced by no reduction in lost wages as experienced by women abandoning their work outside the home. ….