Policies to Assist Parents with Young Children

Abstract

The struggle to balance work responsibilities with family obligations may be most difficult for working parents of the youngest children, those five and under. Any policy changes designed to ease the difficulties for these families are likely to be controversial, requiring a careful effort to weigh both the costs and benefits of possible interventions while respecting diverse and at times conflicting American values. In this article, Christopher Ruhm looks at two potential interventions—parental leave and early childhood education and care (ECEC)—comparing differences in policies in the United States, Canada, and several European nations and assessing their consequences for important parent and child outcomes. By and large, Canadian and European policies are more generous than those in the United States, with most women eligible for paid maternity leave, which in a few countries can last for three years or more. Many of these countries also provide for paid leave that can be used by either the mother or the father. And in many European countries ECEC programs are nearly universal after the child reaches a certain age. In the United States, parental leave, if it is available, is usually short and unpaid, and ECEC is generally regarded as a private responsibility of parents, although some federal programs help defray costs of care and preschool education. Ruhm notes that research on the effects of differences in policies is not completely conclusive, in part because of the difficulty of isolating consequences of leave and ECEC policies from other influences on employment and children’s outcomes. But, he says, the comparative evidence does suggest desirable directions for future policy in the United States. Policies establishing rights to short parental leaves increase time at home with infants and slightly improve the job continuity of mothers, with small, but positive, long-run consequences for mothers and children. Therefore, Ruhm indicates that moderate extensions of existing U.S. leave entitlements (up to several months in duration) make sense. He also suggests that some form of paid leave would facilitate its use, particularly among less advantaged parents, and that efforts to improve the quality of ECEC, while maintaining or enhancing affordability, are desirable.

The Impact of Labor Policies on the Health of Young Children in the Context of Economic Globalization

“…Studies from the United States and the United Kingdom have shown that participation in quality ECCE can benefit children's school readiness, school achievement, and grade completion and reduce grade repetition. These effects have been consistently documented during the early years, although there is some debate over their magnitude and whether these benefits fade out over time, with some studies finding continuing effects and others diminishing differences after the first few years (7,14,16,25,26,30,51,77,78,79,83,99,101,118). Some of the differences in long-term outcomes may be affected by the quality of education received after early childhood.…”

“…Studies conducted in the United States, Canada, Japan, and the United Kingdom have found that the provision of maternity leave increased the likelihood of a woman returning to her prebirth employer, and in Europe, paid parental leave was associated with higher rates of employment among women (11,99,117). As well as benefiting families by providing income during leave and increasing employment stability, this increased long-term employee retention benefits www.annualreviews.org • Labor Policies and Child Healthemployers through reduced hiring and training costs and the increased productivity of an employee well acquainted with the work and the workplace.…”

“…As well as the benefits of greater labor force participation among the current generation of parents (99), fostering the development of a healthier and better-educated workforce benefits future economic development. Additionally, cost-benefit analyses of preschool programs show significant direct returns on investment (8,95,121).…”

“…Evidence confirms the importance of leave for parents of infants, but the ideal duration of leave is still unknown. Although parental care is clearly beneficial for children, evidence from some European countries with long periods of leave indicates that this practice may lead to disadvantages for women in the labor force when provided either as maternity or parental leave without an equivalent length of specifically designated paternity leave (12,39,81,99). If only shorter periods of leave are guaranteed, policy must prioritize quality and affordable care for young children.…”

The Effects of Paid Family Leave in California on Labor Market Outcomes

“…Along this dimension, the FMLA and the state laws we discuss below are broader than the provisions in many other countries. See Ruhm (2011) for a detailed discussion of family and parental leave laws in both a U.S. and an international context.…”