Sunday, February 01, 2015

In a few states, paid parental leave covered by small payroll tax and does reduce use of welfare benefits

Here we go again.  Clair Cain Miller has a major piece “The economic benefits of paid parental leave” in the New York Times, p. 3, today, Sunday, February 1, 2015, link here
She discusses the situations in California, New Jersey and Rhode Island and says that it is financed by a small payroll tax.  One of the main benefits is that, since parents (mainly mothers) are more likely to return to work, they are less likely to wind up on welfare or use other public benefits, according to the study.
It’s important to note that the paid leave law would include caring for parents, which somewhat involves the childless more than might be expected, as life spans lengthen and (with smaller families) the number of available caregivers is less. 
The benefits have been available to unmarried mothers, which could raise an objection of asking others to subsidize "someone else's behavior".  
Still, the law is likely to create more issues in salaried workplaces, where other workers don’t get paid more for taking up the slack (often on their own time).

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