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Gabbie Puzon
Professor Kufs
English 115
28 October 2016
On the Benefits of Paid Maternity Leave
In the silence of the bathroom, a woman is both overjoyed and apprehensive at the sight
of her positive pregnancy test. Within the next few days, she drafts a maternity leave letter and
schedules a meeting with her supervisor to try and negotiate for paid leave. She thinks everything
through the possible dates to take, the projects she has to finish before taking leave, and even
the outfit she would wear on the day of the meeting. After sending in her letter and having a
lengthy talk with her boss, she receives a blatant rejection letter in her mailbox a few days later.
Apparently, the company does not offer paid leave to employees who that have only worked in
the firm 11 months or less. She, unfortunately, was only hired 9 months ago.
With a baby on the way, what could she possibly do now?
With the increase of dual-income families in the past few decades, the need for womens
work benefits is at an all-time high. Nowadays, women are expected to be both active in
workplace performance and in child-rearing at home. Unfortunately, the United States is one of
the two countries in the world that does not guarantee paid maternity leave, with the other being
Papua New Guinea (Wares, Maternity Leave and Why the United States is the Only Developed
Nation Without It). Although the U.S. already has the Family and Medical Leave Act of 1993 in
place, only about 60 percent of the workforce can access the benefits of the said law. The Family
and Medical Leave Act, or FMLA, offers three months of unpaid leave to employees that have
accumulated 12 months of tenure at a firm of 50 or more employees (Wage and Hour

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Division). Currently, about 40 percent of women in the U.S. do not have access to maternity
leave either due to the small size of their firms or their lacking tenure. While some private
sectors and states such as California, New Jersey, and Rhode Island offer paid leaves to
employees, there is a need for a federal law that is inclusive to all American women.
Some skeptics argue that offering paid maternity leave to women may be too costly and
burdensome to employers, and that the government would end up giving too much restrictions on
how to run their enterprise (Miller, The Economics of Paid Parental Leave). They argue that
employers would have to finance womens health insurance during their leave. The employers
would also have to allocate funds to replace womens labor productivity by hiring and training
substitute employees. Additionally, there is the argument that employers would possibly have to
give lower pay to women or exclusively hire women that are not of child-bearing age. However,
skeptics have to take into account that childbirth is not an everyday occurrence (The Economics
of Paid and Unpaid Leave). Paid maternity leave is a suggested protocol for what should be
done on the occasion a woman does give birth.
Women who take paid leave show a stronger attachment to the labor force and increased
employee morale. According to a research conducted by the Center for Women and Work at
Rutgers University, a study of mothers in California found that women who quit jobs at the time
of pregnancy are less likely to have paid leave as compared to those who continue working. A
Census report in 2011 showed that 80 percent of mothers who returned to work remained with
the same employer. In addition, those who take leave during pregnancy have shown to work one
month longer on average. Paid maternity leave would allow employees to remain in the
workforce, as opposed to them quitting due to child-rearing responsibilities. Contrary to the
argument posed by the skeptics, paid maternity leave does not decrease the labor force. A survey

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of California employers in 2009 and 2010 showed that 87 percent of employers reported that no
cost increases were resulted by the states family leave program (Boushey, To Grow Our
Economy, Start with Paid Leave). That being said, employers can spend less on employee
replacement costs to compensate for the lost productivity since women are more likely to return
to work. The median cost of replacing an employee is 21 percent of the absent employees annual
salary of course, this can be significantly reduced with an effective paid leave policy (The
Economics of Paid and Unpaid Leave). With the reduced financial stress that paid maternity
leave offers, women can focus more on their jobs because they are guaranteed economic security.
Because women are more likely to remain in the workforce due to paid maternity leave,
they would end up working more hours, thus receiving increased wages. One of the biggest
concerns brought up by skeptics is that women end up having to pay motherhood penalty, which
is essentially the systematic disadvantages mothers experience in terms of pay, benefits and
perceived competence. However, Lundberg and Rose of the University of Washington found that
women who maintain employment in the year prior to birth and post-birth experience no wage
declines, as compared to women who experience work interruptions of about a year have
reported hour and wage deductions (Houser & Vartanian, Pay Matters: The Positive Economic
Impacts of Paid Family Leave for Families, Businesses, and the Public). This implies that the
lack of proper paid leave policies increases work absences for mothers, and in turn decreases
work performance. Because the duration of work and increase in wages are associated, it is
expected that paid leave shows positive effects on wages. Women who took leave and returned to
their jobs after have been reported to work 15 to 20 percent more hours during the second year of
their childs life, in comparison to women who did not take leave (Miller, The Economic

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Benefits of Paid Parental Leave). Their hourly wages were shown to have increased by 5
percent. Overall, paid maternity leave, contrary to popular belief, benefits womens wages.
With paid maternity leave comes more economic security. Women who take paid leave
are 40 percent less likely to rely on public assistance and supplemental help after their childs
birth (Boushey, To Grow Our Economy, Start with Paid Leave). More often than not, a major
consequence of unpaid maternity leaves or parents quitting their jobs is doled out on the
taxpayers money through public assistance. That being said, paid maternity leave, or a lack
thereof, does not only affect the families involved, but also the government and taxpayers in the
long run. A survey in 2000 regarding family leave-taking showed about one-tenth of the workers
utilizing unpaid FMLA after their childs birth used public assistance during their leave (Houser
& Vartanian, Pay Matters: The Positive Economic Impacts of Paid Family Leave for Families,
Businesses, and the Public). In addition, the Rutgers study also emphasized that the women who
do receive food stamp income before their childs birth have a 60 percent lower likelihood of
increased levels of food stamp receipts after birth with paid maternity leave. Nevertheless, it is
also important to note that the data above is most evident if the focus was exclusively women not
married at the childs time of birth, or women in low-income households.
It is no question that paid maternity leave benefits women economically and financially.
Having said that, it is high time for a more effective and inclusive family leave policy to take
effect. Even with private sectors and some states offering paid leave, 40 percent of American
women do not enjoy the benefits (Wares, Maternity Leave and Why the United States is the
Only Developed Nation Without It). The FMLA, although utilized widely, does not encompass
all working American women. Because of its strict prerequisites, many women find themselves
paying the motherhood penalty with unpaid leave, or not taking any leave at all, which

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jeopardizes their health and their childs early development. With all of this in mind, the first
factor to consider in making a new family leave policy is to change the eligibility requirements
of paid leave. Instead of offering paid leave to relatively big firms, the proposed policy must also
be available to small businesses and the self-employed (Boushey, To Grow Our Economy, Start
with Paid Leave). Also, the policy must look into the prospective employees lifetime work
history, rather than the employees current job tenure at a firm. The new policy must ensure the
economic security of the employees taking leave in order to ensure the employees attachment to
the labor force.
Having said all of that, womens work benefits would surely increase should a mandated
federal policy take effect. The nations lawmakers need to consider how economically beneficial
paid maternity leave is to families, one of the important actors in the overall economy.

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Annotated Bibliography
Boushey, Heather. To Grow Our Economy, Start with Paid Leave. Northwest, Washington
DC: Cato Institute, November 2014.
Bousheys essay gave important points on how paid leave positively affects
economic growth. She first gave a background on the rise of dual-income families in the
recent decades. She emphasized how modern American families have to juggle with work
and child rearing. Boushey also gave a potential blueprint for a proposed paid leave
program to replace the current one. Later on, she provides a comprehensive argument
detailing the possible benefits of paid family and medical leave on both businesses and
families.
The essay was direct and matter-of-fact in its enumeration of points. Boushey
cited statistics and past studies to support her claim, and she gains credibility for doing
so. Her writing is student-friendly, and the essay can be used as a foundation for a propaid maternity leave argument. She also included an alternative for the current family and
medical leave policy to strengthen her stance.
The whole read, although fact-heavy, can easily be understood by readers who are
not familiar with the topic. Several of her points are relevant to recent issues, and her
stance is logically backed up by statistical evidence. Although the essay is not necessarily
a research report, it still gave strong insight on the paid maternity leave debate.
H.R., 103rd Cong., U.S. Dept. of Labor, Employment Standards Administration, Wage and Hour
Division (1993) (enacted). Print.
The Family Medical Leave Act of 1993 details the provisions that come with
taking a leave in the workplace. The law states the eligibility requirements, employer

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coverage, leave entitlement, intermittent or reduced scheduled leave, substitution of paid
leave, and other factors surrounding the implementation of the FMLA. Signed by Bill
Clinton in 1993, the law sought to provide easier balance between family and work for
the American citizens.
The law is meticulous and in depth when explaining the conditions of the FMLA.
As an academic resource, it is infallible as it is a federal document. To the average
American citizen, reading the entire policy might be too technical. The document is full
of branching subsets, most of which make use of government and business jargon.
The purpose of citing the FMLA is for this essay to have a legal foundation. As
was stated earlier, the credibility of a legal document is nigh infallible, and it provides a
strong supporting backbone for the argument at hand.
Linda Houser, Ph. D. & Thomas P. Vartanian, Ph. D. Pay Matters: The Positive Economic
Impacts of Paid Family Leave for Families, Businesses, and the Public. New Brunswick:
Rutgers Center for Women and Work, 2012. Document.
Housers and Vartanians report on the positive impacts of paid leave provides
detailed insight on the economic aspect of the paid leave debate. Their study sample
included women and men aged 30 and under who reported a childs birth and at least 20
hours per week of work in the 3-4 months prior of birth. They relay their key findings,
specifically, on labor force attachment, wages, and public assistance and food stamp use.
Their study was not completely inclusive to all Americans, especially in regards
to age. The study did not include people above 30. However, the researchers specified
how this was such because the National Vital Statistics Report showed 63.3% of live
births in the US in 2008 were from women aged 29 and under. Another important thing to

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note in the study was that the researchers provided a control for the respondents wages
before birth, number of work hours, family income relative to the poverty line, spouses
salary, health status prior to the birth, race, family size, age, education, and marital status.
The content of the report was relevant to current times, and the source material
provided an in-depth analysis of the benefits of paid leave. The study also included
counterarguments and statistics to bolster its overall credibility. Lastly, the entire report
could be understood by the lay person; Houser and Vartanian did not delve too deeply
into the technical side of their argument. The report could serve as a good source for
students researching a similar topic.
Maternity Leave and Why the United States is the Only Developed Nation Without It. Directed
by Tracy Wares, 2016.
The above documentary talks about the United States current stance on paid
maternity leave as compared to other developed nations. Currently, the US does not
guarantee paid leave, and the documentary puts emphasis on why women in the
workforce need a new mandated law to aid them.
The documentary was an interesting watch. In the beginning, it detailed the
experiences of a mother who lost her three-month old son at daycare and how she needed
a better paid leave policy from her company. The video also showed accounts from labor
experts, political figures, and medical authorities to shed different perspectives on the
situation. Above all, the video was an informative and enlightening watch to enlighten
people of the need for paid maternity leave.

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As a source, the documentary was eye-catching because of the inclusion of real
life accounts from both mothers and experts. Both students and teachers will be able to
appreciate the educational content the documentary has to offer.
Miller, Claire Cain. The Economic Benefits of Paid Parental Leave. The New York Times. 30
January 2015.
The content of the article is essentially the title the economic benefits of paid
parental leave. Miller gives the experiences of Jennie Pasquarella and Larisa Casillas in
regards to paid maternal leave. Because both live in California, a state that offers paid
leave, both share their reflections on the importance of income-supported leaves on their
familial life. The article also sheds light on the need for a change in workplace culture.
From a reference standpoint, the article shares a balanced mixture of statistical
and qualitative data. The text has a personal perspective to accompany the hard data. It
can also be easily be understood by the common person, as its language is very direct in
style without being overly didactic.
This article serves as a journalistic perspective for the paid maternity leave
argument. As a research source, it is both credible and easily understandable. Students
would find this as a valuable and informative resource for future study on paid maternity
leave, especially in recent contexts.
The Economics of Paid and Unpaid Leave. Issue Brief. Northwest, Washington DC: The
Council of Economic Advisers, 2014. Document.
This report by the Council of Economic Advisers shows the situation of paid
leave in the US at the midway point of President Obamas administration. The report also
details evidence of the pressing need for a better paid family leave policy that both

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supports the working class and does not have a costly impact on businesses. As a whole,
the document analyzes the matter from the socio-economic and political perspective.
As a source, the report is comprehensive with its findings. There are valid
statistics and graphs to justify the researchers findings. Because this document is as
official government report, there are many terms that may not be understood by the lay
person. Lastly, there seem to be hints of political bias as this report was written by an
organization under the Obama administration.
The report was an efficient source in terms of statistics. Also, as a legal document,
it provided high credibility. One section of the source, specifically Section IV, was very
concise in explaining the economic aspect of paid family leave to businesses. Students
could very well use this as a research source in the future.