As has been demonstrated in California, better-off women have been the ones who have taken advantage of paid leave. The benefit is heavily concentrated among higher-earning women, with the median participant earning $10,000 more than working women more generally. University of California, Davis researchers speculated this was because better-paid women were more likely to be aware of and at jobs in which they were eligible for the compensation, as well as more inclined to accept less than full pay in exchange for time off. But whatever the reason, this redistribution reality poses a dilemma for those who support parental leave in the abstract but are also interested in reducing income inequality and creating a more inclusive economy.
Similarly, for those who want to encourage the participation of women in the workforce, a family leave mandate raises the prospect that employers will be less likely to hire women. While the high-profile case of Transportation Secretary Pete Buttigieg’s paternity leave shows that both men and women can benefit from parental leave, women remain far more likely to take advantage of such options. At the same time, employers fear that, even with federal subsidies, having employees take long stretches away from their job is not cost-free.
As a result, some employers may be more reluctant to hire younger women whom they believe will be more likely to take time away from the job.
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