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Pioneering Research on the Costs and Benefits of Paid Family Leave

By Jeff Hayes, Ph.D.

Since its founding, IWPR has studied the costs and benefits of American workers’ access to leave for childbirth, personal health needs, or family caregiving. IWPR’s inaugural publication, Unnecessary Losses: Costs to Americans of the Lack of Family and Medical Leave  showed that by not recognizing the need for work-life balance, established policies not only failed to support workers and their families, but were costly to taxpayers. The study’s findings informed the passage of job-protected, unpaid leave in the Family and Medical Leave Act of 1993.

Expanding beyond unpaid leave, IWPR studied the possibility of providing paid family leave by enhancing Temporary Disability Insurance (TDI) programs operating in California, Hawaii, New Jersey, New York, and Rhode Island in a fact sheet describing the program and in a paper presented at the American Economic Association in 1995. Since that time, three states—California, New Jersey, and Rhode Island— have implemented paid family leave expansions.

3.2_Paid-Leave-Legislation

More recently, IWPR worked in conjunction with the Labor Resource Center (LRC) at the University of Massachusetts–Boston to develop a flexible econometric model for estimating the costs and benefits of paid family and medical leave insurance proposals. The original IWPR/LRC Family and Medical Leave Cost Simulation Model used data from the U.S. Department of Labor’s (DOL) 2000 FMLA survey and the March Current Population Survey (CPS), and incorporates the unique features of various proposed programs, from waiting periods to eligibility criteria. This IWPR/LRC model has been used to estimate the costs and benefits of proposed paid family leave legislation in several states: Massachusetts, New Mexico, Maine, Maryland, Illinois, Minnesota, and Washington.

This year, the model was used by IWPR to study the costs and benefits of paid leave in the District of Columbia in collaboration with D.C.’s Department of Employment Services. The analysis was part of a recent family of studies funded by the Women’s Bureau at the U.S. DOL to inform the development or implementation of paid family and medical leave programs at the state level. The research continues to show that providing leave benefits under alternative policy designs could provide substantial benefits at relatively low cost. Early results were used by members of the D.C. City Council for a proposal to provide up to 16 weeks of partially paid leave for employees of private employers in the District of Columbia and allow D.C. residents working for the federal government or employers outside of the District to opt in. The legislation, if it passes, could be the most generous paid leave policy in the country.

Beginning in 2014, IWPR and IMPAQ International have been working under contract with the Department of Labor’s Office of the Assistant Secretary for Policy, Chief Evaluation Office to update the IWPR/LRC simulation model to base leave-taking behaviors on the 2012 FMLA survey and the American Community Survey (ACS) for local labor force estimates. The larger sample size in the ACS provides greater geographic detail than what is available in the CPS for studying family and medical leave proposals in states, counties, or cities. Furthermore, the additional data available in the ACS on place of work allows for greater focus on the analysis of costs and benefits to employers in local areas considering policy changes.

Moving forward, IWPR, under federal and state research contracts, will be using the updated Family and Medical Leave Cost Simulation Model to study leave policies in Minnesota, New Hampshire, Montgomery County, MD, and the expansion of Rhode Island’s Temporary Caregiver plan.

New BLS Data Confirm Unequal Access to Paid Leave Among U.S. Workers

By Kevin Miller and Caroline Dobuzinskis

Today the Bureau of Labor Statistics released data from the American Time Use Survey (ATUS) on access to and use of paid leave by American workers. This is the first time the ATUS has included questions on leave-taking among American workers, with a module paid for by the Department of Labor’s Women’s Bureau.

The findings from the 2011 Leave Module of the ATUS reveal that many American workers lack access to paid leave from their jobs, though access varies by worker and occupational characteristics. Overall, 59 percent of workers in the United States have access to paid leave; 4 in 10 American workers lack access to paid leave. This reflects IWPR research analysis that found that 44 million workers in the United States lack access to paid sick leave and that only 58 percent of private sector employees in the U.S. had access to paid sick days in 2010.

Overall, the newly released BLS data on leave access and use by American workers confirm large disparities in access to and use of leave, especially paid leave. Workers with lower wages, Hispanic workers, workers in poorer health, and workers in jobs that put them in direct contact with the public (e.g., sales or hospitality workers) are less likely to have access to leave from their jobs and are more likely to lose pay when they do take leave.

Findings Show Large Gaps in Access to Paid Leave Among U.S. Workers

Men and women have similar rates of access to paid leave, with 60 and 58 percent of male and female workers with access to paid leave, respectively. The reasons for taking leave tend to differ between gender, with more women tending to take leave for illness or medical treatment for themselves or a family member.

Based on educational levels, there are large disparities in access to paid leave. Workers with college degrees are far more likely (72 percent) to have access to paid leave than workers without a high school diploma (35 percent). The BLS data also show large gaps in access between Hispanic and other workers. Hispanic workers are less likely to have access to leave (43 percent) than are non-Hispanic workers (61 percent). White, black, and Asian workers have similar rates of access to paid leave (59, 61, and 62 percent respectively).

Among full-time workers, those in the top quartile of earnings are the most likely to have access to paid leave (83 percent have access), while those in the lowest quartile are less likely (50 percent have access). Seventy-nine percent of workers in the financial industry have access to paid leave, while only 25 percent of those in the leisure and hospitality industries—which include food service—have access to paid leave. Workers in the private sector are less likely to have access to paid leave (57 percent) than are workers in the public sector (76 percent).

Taking Time Off Can Mean Lost Wages for Many Workers

Though over half of workers have access to some kind of paid leave, and 90 percent have access to either paid or unpaid leave, in an average week only 21 percent of workers took leave (including either vacation or sick time) according to the BLS.

Women, who tend to have more caregiving duties for children and older relatives, were slightly more likely than men to take leave from their jobs during an average week (23 percent compared with 20 percent). Of women workers who took leave in an average week, 35 percent did so either to care for their own medical needs, for those of a family member or relative, or to provide elderly care or child care, compared with 25 percent of men who took leave for the same reasons.

Workers who characterized their health as fair or poor were somewhat less likely to take leave in an average week. But those who did were more likely to take unpaid leave compared with those who characterized their health as good. Sixty percent of workers in fair or poor health took unpaid leave, compared with 38 to 39 percent who characterized their health as good, very good, or excellent (most of whom took paid leave). IWPR’s analyses of the costs and benefits of paid sick days in several states and cities nationwide have found that access to paid sick days improves workers’ self-assessed health, reduces costly emergency department visits, and reduces health care costs to private and public insurers.

Reflecting the lack of access to paid leave in many service-oriented jobs, workers in management, business, and financial operations were much less likely to take unpaid leave compared with workers in service occupations (20 percent took unpaid leave compared with 66 percent). Of those workers in the leisure and hospitality industry who took leave in an average week, 86 percent took unpaid leave. Only 13 percent of workers in this industry took paid leave.

Mirroring the inequality in access to paid leave that exists across income levels, workers in the top quartile of earnings are twice as likely to have taken paid leave in an average week (82 percent) compared with workers in the lowest quartile of earnings (40 percent).

These new findings reaffirm the lack of equal access to paid leave that can leave many workers without economic or job security if an illness should arise for themselves or for a family member. Without access to paid leave, many workers simply cannot afford to take time off. Workers who are sometimes forced to work while ill tend to be those who are most likely to come into contact with the public and spread contagious illness. Women, often those caring for family members, tend to be disproportionately impacted because they are more likely to work in part-time jobs and tend to have lower earnings than men.

Visit IWPR’s website for more information on IWPR’s research on paid sick days and the impact on paid sick days legislation on workers and businesses.

Kevin Miller is a Senior Research Associate and Caroline Dobuzinskis is the Communications Manager with the Institute for Women’s Policy Research.

Top 5 Findings of 2011

Women with lightbulbsby Caroline Dobuzinskis, with Jocelyn Fischer and Rhiana Gunn-Wright.

In 2011, IWPR released several important findings on relevant topics such as the continuing impact of the recession, increased reliance on Social Security among older Americans, and the value of paid sick days for improving public health. Read the top findings below and continue to follow IWPR or sign up for our e-alerts to stay informed on our latest research on women, families, and communities.

1. During the recovery, men gained more jobs overall than women. Contrary to the image presented by a new, widely-panned sitcom, the recovery is not proving to be easier for female job seekers. Overall, men have regained one out of three jobs lost in the recession, while women regained one of every four jobs they lost. But the last quarter of 2011 saw women making some gains in the job market: men and women had equal job growth in the past three months at 206,000 jobs each.

2. Many Americans are living paycheck to paycheck and some cannot afford to put food on the table. Last September, IWPR released findings from the IWPR/Rockefeller Survey of Economic Security showing that only 43 percent of women and 61 percent of men would have the savings to pay for living expenses for a period of two months. In households with more than one person who experienced unemployment for one month or longer in the two years prior to the survey, 27 percent of women and 20 percent of men went hungry because they could not afford food.

3. Americans strongly support Social Security and have grown increasingly reliant on the program in the last decade. A large majority of Americans (74 percent of all women and 69 percent of men in the IWPR/Rockefeller survey) say they  don’t mind paying Social Security taxes for the benefits they will receive when they retire. Between 1999 and 2009, the number of men aged 65 and older relying on Social Security for at least 80 percent of their incomes increased by 48 percent to equal more than a third of all men aged 65 and older in 2009. The increase for comparable women was 26 percent to equal half of older women in 2009.

4. The number of on-campus child care centers has declined and presently can only meet five percent of the child care needs of student parents. There are 3.9 million student parents pursuing postsecondary education in the United States, 57 percent of whom are also low-income adults. Access to affordable, on-campus child care has decreased, partly due to the increase of for-profit postsecondary institutions.

5. Paid sick days would reduce emergency department visits–saving $1 billion in health care costs. Access to paid sick days would eliminate 1.3 million emergency department visits per year and would save $500 million to taxpayers through public health insurance costs because regular doctors’ office visits would substitute for expensive emergency room care. Informed by research from organizations such as the Institute for Women’s Policy Research, paid sick days legislation gained significant momentum across the country last year.

Caroline Dobuzinskis is the Communications Manager at the Institute for Women’s Policy Research. Jocelyn Fischer is Assistant to the President and Rhiana Gunn-Wright is this year’s Mariam K. Chamberlain fellow.

How Does Your State Rank?

KIDSCOUNT Data CenterThe 2011 KIDS COUNT Data Book is now available.

By Mallory Mpare

The 2011 KIDS COUNT Data Book (a project of the Annie E. Casey Foundation) was released today. Similar to IWPR’s Status of Women in the States initiative, the Data Book provides state rankings based on key indicators of child well-being. The message this year, “America’s Children, America’s Challenge: Promoting Opportunity for the Next Generation,” focuses on how children and their families are coping post recession. This edition includes data on the status of children with at least one unemployed parent in 2010 as well as data on children affected by foreclosure since 2007.

Past IWPR research shows that early care and education programs are crucial to a thriving economy. The KIDS COUNT Data Book not only serves as a comprehensive resource on the status of children in the United States, but also provides data on the role of investing in early childhood programs in order for the next generation to succeed.

IWPR joins the Annie E. Casey Foundation in inviting you to explore the findings and see how your state ranks!

Mallory Mpare is the Communications Assistant with the Institute for Women’s Policy Research.

The For-Profit College Education: A Not-So-Golden Ticket

By Jennifer Herard

Nontraditional students are often committed and motivated to pursuing postsecondary education, but confront unique challenges. The for-profit college industry has stepped in to fill the demand for education of nontraditional students, but often these schools succeed only in adding to the burdens on nontraditional students.

Nontraditional students—a term that can include those who are working part- or full-time while acquiring an education, student parents, and those who have delayed enrollment—make up a significant part of the overall student population. According to a March 2011 Institute for Women’s Policy Research (IWPR) report, nearly a quarter (3.9 million) of postsecondary students in the United States are parents—of which 57 percent are low-income. Women make up a significant portion at 78 percent of single student parents and 81 percent of low-income, single parents.

Low-income, single parents face unique challenges and needs, such as access to affordable child care. But for student parents, the hard-fought earning of a degree can provide a significant payoff in the way of increased earnings and educational outcomes for children in the family. For-profit colleges offer student parents what seems to be a golden ticket, attracting a high proportion of student parents—48 percent of students at for-profit colleges have dependent children, more than double the proportion found at public and not-for-profit institutions. However, for-profit colleges often do not provide adequate support to ensure student parent success.

As a result of a noticeable growth in enrollment, profits, and amounts of financial aid funding at for-profit colleges, Senator Tom Harkin, Chairman of the Senate Health, Education, Labor and Pensions (HELP) Committee, launched an investigation in June 2010 with a series of five hearings and a document collection to investigate the industry’s practices.

The investigation revealed that for-profit colleges hire droves of recruiters who often use misleading practices to pull in nontraditional students. Senator Harkin asked the Government Accountability Office (GAO) to investigate recruiting practices and found  “[r]ecruiters are too often encouraged to hide the ball on matters of cost, transferability of credits, graduation rates, and employment and salary after graduation.”

This is only one of the findings of the investigation that raised red flags, particularly for low-income parents. According to the HELP Committee’s investigation, for-profit colleges are actually six times more expensive than community college and twice that of four-year public schools. Low-income students often take out federal loans in order to pay the exorbitant costs of for-profit colleges and then are not able to complete their program, leaving them saddled with a huge amount of debt and no degree to provide better job opportunities.

Adding to this, once students are enrolled, for-profit colleges often do not make available the support services that nontraditional students need to be successful, such as academic advisors or childcare services.

IWPR hosted a July 25th webinar titled Closing the Financial Gap for Low-Income Student Parents: The Benefits of Integrated Service Delivery on Community College Campuses. Ann Lyn Hall, Director of CNM Connect at Central New Mexico Community College and Kristina Testa-Buzzee, Director of the Family Economic Security Program at Norwalk Community College in Connecticut discussed the ways that their institutions support student parents.

Hall said that bundling services—providing two or three of support services such as public benefits screening, academic advising, and achievement coaches—allows a student to achieve his or her educational outcomes at a better rate than when services are provided in isolation. Surprisingly, student parents at Norwalk Community College reported that coaching services are more valuable to their success than financial services.

For-profit colleges are sinking money into recruitment and that is not a helpful service for student parents who already have the motivation and desire to go to college. Instead, these dedicated students need support staff, such as achievement coaches, to help in navigating the college environment.

Jennifer Herard is the Research Intern with the Student Parent Success Initiative, an Institute for Women’s Policy Research project.

National Council of Women’s Organizations Launches “Respect, Protect, Reject” Campaign

By Heidi Reynolds-Stenson

In effort to reach a budget deal by the debt ceiling deadline on August 2, leaders in Congress have indicated they are willing to make cuts to vital programs such as Social Security, Medicare, and Medicaid. The cuts would harm women and families who rely on these programs for their survival. In response, the Older Women’s Economic Security (OWES) Task Force of the National Council of Women’s Organizations (NCWO) launched a nationwide campaign, “Respect, Protect, Reject 2012.”

Through a public petition, the task force is asking lawmakers to respect women’s contributions to the economy and their need for economic security, protect Social Security, Medicare, Medicaid and other programs that are vital to women, and reject any budget plan that will impoverish vulnerable women and families. The task force wrote to congressional leaders on Tuesday to warn of the consequences of cuts to such programs for women and for the national economy and to urge the leaders to “place women’s circumstances and concerns at the center of their analysis and response.”

To help spread the word about the new campaign and bring more attention to these issues, NCWO held a conference call on Tuesday, July 12 moderated by NCWO Chair Susan Scanlan. On the call, Congresswoman Donna Edwards of Maryland’s 4th District—who recently signed onto a letter with 69 other Democrats urging President Obama to oppose cuts to Social Security, Medicare, and Medicaid—emphasized that although the national debt clearly needs to be dealt with, it is important that it not be done at the expense of critical social safety net programs. She explained that for many of her constituents, women in particular, “Social Security is their security. Social Security is their groceries…It’s their day-to-day-expenses and so it’s not an option.”  

National Organization for Women (NOW) President Terry O’Neill reminded leaders to look not to Social Security, Medicare, and Medicaid when deciding how to reduce the national debt but to what is really contributing to the national debt— joblessness (because less jobs means less income tax revenue), Bush-era tax cuts for the wealthy, and unfunded wars. She also shared a startling statistic—if the chained-CPI adjustment is made to Social Security, 73,400 more people will be in poverty by 2020 as a result, over 54,000 of which will be women.  Asked by a reporter if she thought everything should be on the table in the debt negotiations, O’Neill responded, “Emphatically, no. We do not agree.”

Joan Entmacher, Vice President for Family Economic Security at the National Women’s Law Center (NWLC) brought attention to how much women have been suffering in the recovery since the end of the Great Recession.  While men have been gaining jobs since the end of the Great Recession, women have actually been losing jobs, mainly due to lay-offs in the public sector.  Cuts to vital programs will worsen an already difficult situation for women resulting from policies such as deregulation and taxes on the middle class.

Retired worker and member of the board for the Older Women’s League, Margie Metzler shared a moving personal story of what Social Security and Medicare have meant to her. Laid off at age 62, she found that no one was willing to hire an older woman. Without health insurance or family to support her, she began receiving Social Security, and then Medicare after she turned 65. Hearing talk of cuts to these programs terrifies Margie because she knows she has nothing to spare.  “The reality is they’re saying to me, ‘It’s perfectly fine if you just die.’”

Margie is committed to fighting for these programs that have been such a lifesaver for her and cautioned against reforms such as means-testing that might discourage women in need from applying for aid through programs such as Social Security. “I am not one of those people who says, ‘I have mine. I don’t care about the rest of you… I am going to be fighting for the people behind me,’” said Margie.  “From my standpoint, how can I feel anything but terrified and angry, but I also feel galvanized into action.”

Heidi Reynolds-Stenson is a Research Intern at the Institute for Women’s Policy Research.

Women Workers in a Post-Walmart World

By Katherine Kimpel

Last week, the Supreme Court issued a decision that makes it harder for women in the workplace to protect their rights to be free from discrimination.  In reaching their decision in Dukes v. Walmart, the Justices—the five men who wrote the majority opinion, notably overruling the objections of all three women on the court— assumed that discrimination in the workplace just doesn’t really happen that much anymore. But Supreme Court Justice Antonin Scalia and the other men on the court didn’t cite any evidence, didn’t refer to any studies, or even bother to tell any anecdote to back up that claim. They didn’t bother to contend with the fact that individuals and government agencies continually litigate, prove, and then settle or win employment discrimination cases—cases that show that discrimination is, alas, alive and well.

For example, just last year a jury in New York federal court delivered a unanimous verdict against Novartis Pharmaceuticals Corporation, finding that the corporation had discriminated against female employees in pay and promotions, and had discriminated against pregnant employees. Although the over $250 million dollars resulting from that verdict was significant, even more important were the 23 pages of changes to policies and procedures that the company later agreed to in order to settle the case.

You see, the brave women who stood up to Novartis to bring that lawsuit helped more than themselves.  They helped the other women at Novartis, by getting the company to change. They helped other women working in the pharmaceutical industry, by sending a message to employers that discrimination will not be tolerated and that litigation can result in just and heavy penalties. And they helped the government, by holding a global corporation accountable to our federal civil rights laws.

Congress knew, when drafting the civil rights laws, that we could never expect the government to shoulder enforcement by itself. They created a system where individual Americans could stand up and act as private attorneys general—essentially privatizing, in part, the enforcement of equal opportunity. However, had last week’s Supreme Court decision in Dukes v. Walmart been the law of the land in 2010 when Novartis was decided, the brave plaintiffs in the case may not have been successful, and the changes at Novartis may never have happened.

For women workers in a post-Walmart world, it is undeniable that the scales are weighted more heavily in favor of corporations, scaling back the progress for which our mothers, grandmothers, and great grandmothers fought so valiantly. That sad fact does not relieve us of responsibility; instead, it simply means that we will all have to fight harder and with more determination than before.

On a day-to-day basis, this fight takes shape in advocating for yourselves in negotiating starting salaries, demanding rightful raises, and pushing aggressively for promotions. This fight takes shape in developing trusted coworkers who will help you benchmark your compensation and better understand the ladders to success. This fight takes shape in keeping detailed records of all of this and of your employers responses, good or bad, so that if the day comes when you or they need to get outside help, you’re ready. This fight takes shape in refusing to be silent when you or a coworker is underpaid, passed over for promotion, subjected to harassment, or disproportionately disciplined.

All of those things are necessary and good, but they are not enough. Women workers— indeed, all workers—in a post-Walmart world need to be proactive about this affront to our fundamental right to equal opportunity. Educate family and friends, write letters to your local paper, and contact your elected representatives to let them know you’re paying attention, you’re concerned, and you expect the Supreme Court’s over-reaching on behalf of corporations to be corrected.

Justice Scalia and the four other men of the majority got it wrong when they assumed that our world is a better place than it is, when they assumed that discrimination doesn’t happen anymore. They got it wrong when they decided that protecting corporations was more important than protecting individual Americans, be they men or women of any race. But the underlying faith in people wasn’t entirely misplaced. Every day, I work with men and women whose bravery to stand up for what is right inspires me. The moment now calls for the rest of us to also stand up to a Supreme Court that has gone too far.

Katherine M. Kimpel is a Partner of Sanford Wittels & Heisler, LLP, a national law firm with offices in Washington, D.C., New York, and California.  Ms. Kimpel received her law degree from Yale Law School in 2006. She served as class counsel in the Velez v. Novartis gender discrimination case and authored the amicus brief on behalf of the U.S. Women’s Chamber of Commerce in Dukes v. Walmart. Before joining Sanford Wittels & Heisler in 2007, Ms. Kimpel served as Special Counsel to Senator Russell Feingold on the Senate Judiciary Committee, where she handled criminal justice and other civil rights issues for the Senator.

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