Unintended Consequences of Family-Friendly Policies

business_ethics_highlights_2It’s almost as if employers calculate the total cost of employing someone and adjust non-mandatory aspects of the wage and benefits package downward when they are mandated to provide a particularly expensive benefit, like maternity leave. >>>

LINK: When Family-Friendly Policies Backfire

Family-friendly policies can help parents balance jobs and responsibilities at home, and go a long way toward making it possible for women with children to remain in the work force. But these policies often have unintended consequences.

It eases the transition back to work and helps children’s development, said María F. Prada, an economist at the Inter-American Development Bank and lead author of a new study on the effects of the law. But it has also led to a decline in women’s starting salaries of between 9 percent and 20 percent. Researchers compared pay at the same companies before and after they were big enough to be forced to comply with the law. (Another approach by companies, especially smaller ones, has been simply not to comply with the law.)


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