How much would family and medical leave cost workers in the US? Racial/ethnic variation in economic hardship under unpaid and paid policies

Abstract

Using a capability approach, this study assesses economic constraints under the current US national unpaid family and medical leave (FML) policy compared to a hypothetical national paid FML policy for all full-year workers. Existing literature documents gender and class differences in barriers to FML use, but there is limited research on racial/ethnic minority workers. Our results indicate that if FML policy changed from unpaid to paid leave, black workers would gain a greater percentage of family income back relative to white workers, due in part to their larger wage contributions to family income. However, moving to a paid FML policy has a lower likelihood of preventing short-term economic hardship for black and Hispanic workers, compared to white workers. Our findings are consistent with studies, of which there are few, that show that paid FML can decrease, but not eliminate, disparities in black and Hispanic working mothers' capability to take up parental leave and use leave for longer durations. Therefore, further design modifications to FML policy are needed for paid leave to be fully protective of all workers who need to take leave without facing economic hardship. RESUMEN

Employment and leave while parenting children with medical complexity.

“…Department of Labor, n.d.) and Latinx workers (Heymann et al, 2021). Though we did not collect race or ethnicity data for this study, others have identified FMLA eligibility criteria, in particular the requirement that a worker be employed for one year before accessing leave, as contributing to racial and socioeconomic disparities, disproportionately excluding Black, Indigenous, and multiracial families (Heymann et al, 2021), as well as low-income families, who are more likely to work for employers or in jobs that do not provide FMLA benefits (Joshi et al, 2020). A U.S. federal paid leave policy with fewer eligibility criteria would improve feasible and equitable access to time off for caregivers of CMC.…”

“…Wage and Hour Division, 2012). These eligibility requirements for businesses and workers contribute to disparities in access to the federal benefit, disproportionately excluding low-income workers as well as workers of color, particularly mothers of color (Baum & Ruhm, 2016; Brown & Medoff, 1989; Heymann et al, 2021; Horowitz, 2019; Joshi et al, 2020; Rossin-Slater et al, 2013; U.S. Department of Labor, n.d.).…”

Families’ Job Characteristics and Economic Self-Sufficiency: Differences by Income, Race-Ethnicity, and Nativity

“…Both also support healthy child development, although for childcare subsidies, positive effects depend on the quality of the care (Johnson, Martin, and Ryan 2014). Burgeoning research shows that paid family and medical leave programs and childcare subsidies reduce the high costs of unpaid leave and childcare, yet are not equally accessible for black, Hispanic, and immigrant families due to affordability constraints (Baldiga et al 2018;Joshi et al 2019), lower take-up rates (Acevedo-Garcia et al 2021b;Rossin-Slater, Ruhm, and Waldfogel 2013), more limited knowledge about programs (Alvira-Hammond and Gennetian 2015; Goodman, Elser, and Dow 2020); eligibility rules (Acevedo-Garcia et al 2021b;Joshi et al 2020); and administrative burden like extensive application documentation, interim reporting, and benefit or leave reassessments (Adams and Matthews 2013; U.S. Department of Labor 1993).…”

Expanding paid sick leave programs in the wake of COVID-19

“…16. Joshi et al (2019) also provide an assessment of the cost to the U.S. of providing paid family and medical leave, with an emphasis on potential racial and ethnic disparities. the U.S. deficit over the 2020-2030 budget window.…”