Memorandum

Subject: Report on Mandatory Maternity Leave in the State of Wisconsin

This report covers the topic of paid maternity leave – its benefits, costs, overall accessibility, and why it should be instated. This report will include an assessment of the economic impact of paid maternity leave on both the business and the individuals affected by it. It also covers the cultural and interpersonal impact of the lack of paid maternity leave and an analysis on countries that offer maternity leave and what consequences this brings about.

The sources will derive from actual research documents as many areas do offer paid maternity leave. The goal is for a transparent overview, offering both the good and the bad that may come with a change such as this, followed by overall conclusions and recommendations from the collected evidence.

After reviewing this report, please let me know if you have any questions regarding the analysis. I would be more than happy to assist and discuss with you any issues you want to bring up. You can reach me at pbcoghi@gmail.com

Cultural and Personal Impact of Mandated Maternity Leave

Prepared By: Pedro Coghi, Student
Date: 7/26/15
Prepared For: Jennifer Riske, Professor
Technical Reporting - Summer 2015

Table of Contents Executive Summary 4 Introduction 6 Background of Feasibility Question 6 Purpose of the Report: 6 Scope of the Report 6 Methodology/Sources of the Report 6 Discussion of Findings & Results 7 What is Paid Maternity Leave? 7 Why Should We Care? 7 Benefits for the Child 8 Benefits for the Mother 9 Costs 9 Not a First World Problem 9 Positive Outcomes 10 Negative Outcomes 11 Benefits of changing? 11 Conclusion 12 Recommendations 12 References 13

Executive Summary

The purpose of this recommendation report is to show the impact and significance of paid maternity leave. This should be a standard for any developed country, and this report proves that it already is in most, with the United States being one of the few, if not only developed country without a law mandating this.
The research found that there are profound positive impacts from paid maternity leave. It is not as simple as being able to get paid while taking care of your child. There are many additional variables at play. These include the health and mental well being of the mother, from being able to spend more time with her child, as well as the personal security of knowing she will have a job when she returns.
In addition, the child will also have direct contact with the mother during their formative months, something that cannot be substituted simply with a nanny.
The natural recommendation would be to enforce this as federal law. Phases can be implemented to lessen the initial economic shock that may happen to some businesses. The cognitive, behavioral, and health development of the child is directly impacted by having the mother raise them. In addition to this, there have been lower crime rates among children who grew up with a mother with them. With less aggressive behavior, better cognitive development, a happier mother who keeps her job and clearly impacting things to cause a stable family life, this is an overall positive impact to the individual and to the society as whole, especially when taking into consideration the number of working mothers, regardless of economic level that are in the labor force.

Introduction

Background of Feasibility Question
As someone with friends with children and working in environments with unpaid maternity leave, it ends up being that the ones who are hurt by this the most are the children of these parents. This is not focusing on low income families, but families of all background and income levels. This is a problem that affects the majority of women in the workforce, an increasingly growing number. In addition to this, the impact on the children and women with children in the workforce have a natural impact on the rest of society.

Purpose of the Report:
This report in designed to investigate the topic of paid maternity leave, and to educate the reader on the impacts to the individuals (children, mothers, families), companies, and the societal impacts from paid maternity leave within a country as well as within businesses.

Scope of the Report
This report includes information on the definition of paid maternity leave and why we should care. The benefits to the mother and child are covered, along with the positive and negative outcomes from offering this service. In addition, there is a brief summary on the costs attached to offering this, and how the United States as a first world country is far behind other developed countries in terms of maternity leave. This report does not go very specific into the economic outcomes of the decision as there are a variety of ways that this could be offered as well as argued, not unlike offering healthcare. Due to the many venues and options in offering this, the goal of the report is to emphasize the necessity of offering paid leave, and to bring awareness for it to be pushed into law.
Methodology/Sources of the Report
The sources used within this report are from a variety of reports. This includes, but is not limited to newspapers, reputable websites, videos, scholarly research paper and articles, as well as major publications.
Discussion of Findings & Results
What is Paid Maternity Leave? Maternity leave is a time in which a woman obtains an absence of leave shortly before and a number of weeks/months after childbirth. The goal is to assist a woman who recently had a baby to focus all of her time on her child when her baby needs it most, as opposed to needing to be at work. This topic has gained more focus in recent decades due to the increase in women in the workforce. With the high number of career-oriented women, many are put in a spot where they need to choose between success in their career or raising a family. Figure 1 below shows the amount of women in the workforce with a child who is 5 or under.

Figure 1 (US BLS 2010)
Given the graph above, one can see how much of an impact paid maternity leave has on the actual workforce. In the past 30 years the numbers have nearly doubled. Given that 57% of women are in the workforce (DoL 2015), this impacts the vast majority of the population.
Why Should We Care? Given the statistics above, this is something that impacts all of us in one way or another. It is not a debate of those in poor economic situations, such as the food stamps discussion, as this impacts those of all levels of economic success. It is true that those who make better wages can afford a babysitter or childcare. In the USA, costs can average from $5,000 all the way to $15,000 a year depending on the state (Boston Globe 2014). The point however, is not merely on being able to afford childcare, but to be there for the child in the first place. It is also necessary to mention that this impacts those without children, or women who are not in the workforce or past childbearing age. Taxpayers and businesses may be impacted as well as costs for this service would need to be added, either from the taxpayers, the businesses, or both.
Benefits for the Child
Women who obtain maternity leave are more likely to have babies who are breastfed for longer amounts of time. (Child Health 2013) This is relevant as children who breastfeed longer get benefits such as better cognitive development, improved behavior and lowered aggression levels. This is in addition to the long term impact of the societal impact of an increase of children with lowered aggression in the long term, which include lower crime rates, and higher chances of success, among other things. (Emanuel Miller Risks (Still) Associated with Early Child Care).
Figure 2 displays the prevalence of breastfeeding rates with available maternity leave. Apart from Ireland/UK as a major outlier, the correlation between maternity leave and breastfeeding rates are clear.

Figure 2 (State of the World's Mothers 2012)
Benefits for the Mother
There are a number of health issues which stem from the burden of balancing raising a newborn with that of working at the same time. Those that manage to juggle both usually sacrifice their own health in return. The increased stress affects their immune system and psychological state, which could lead to illnesses such as post partum depression. It goes without saying that this not only impacts the woman negatively, but the rest of the family and the work performance as well.
"Without paid maternity leave, many women struggle to afford time off to take care of themselves and their newborns after the birth of a new child. Over 40 percent have to take unpaid leave, and a quarter either quit or are let go from their jobs when a new child arrives. (ThinkProgress)
Costs
"A nationwide, 14- week long maternity leave scheme paid at the federal minimum wage is estimated to cost AUD $460 million per year, before taking savings of other government outlays (e.g. child care subsidies or baby bonus payments) into account, which further reduce the net costs of the programme." (Impact of Paid Maternity Leave 357).
The cost involved is not inexpensive. However it is not something that is already available in similar formats such as those with disabilities who are unable to work for extended periods of time. The difference however is that this is something that can be predicted months in advance, giving the business ample time to prepare. There is a major difference between a 2 week notice and a 7-9 month notice.
Not a First World Problem
Paid maternity leave is not a first world problem as first world countries already have this implemented. This idea has not only been in effect for some time in many nations, but it has been working effectively without problems. The differences lie in regards to exactly how long the maternity leave lasts, and how much pay they receive during their absence as well. As is shown in Figure 3, the United States is clearly in the minority in terms of offering paid maternity leave.
Figure 3 displays major countries and the amount of mandatory paid maternity leave available. This includes the number of weeks as well as the amount of pay which is given during the absence. It can be seen that many industrialized countries offer mostly full wages, with some still providing partial wages. In addition, the wages are offered from a range of 15, all the way to 40 or more weeks. Figure 3 also shows how even countries without the greatest average incomes, such as Slovenia and Latvia, still offer paid maternity leave, while the United States does not offer this at all.

Figure 3 (State of the World's Mothers 2012)
Positive Outcomes * The rewards for this are happier mothers who spend more time with their children * Lower stress levels and more attention/devotion to the newborns when they need their parents the most. * Removal of the potential stress of losing one's job merely due to pregnancy. * More part time positions available as people have the opportunity to get experience, or the possibility of student jobs or internships. * A way to cross train someone for new skills while someone is out of the job temporarily. * Incentive for the woman to stay and continue to grow with the company as opposed to needing to quit and find another job later.
Negative Outcomes
Businesses were not initially molded to adhere to the needs of a women being pregnant. There is a fear that many women may leave once they realize how important it is to be there for the child if they’re allowed to be there initially. However, according to the CEO of Youtube, “ When we increased paid maternity leave to 18 from 12 weeks in 2007, the rate at which new moms left Google fell by 50%.” (Wojcicki).Many things have changed since women have become a major part of the workforce, however businesses have not yet adapted to this as well as they could have. Some additional possible negative outcomes: * Possible risk of abuse of the system * Certain companies may be impacted more than others, such as companies with more female employees. * Finding a way to fill in for missing workers who are on maternity leave * Chance of some companies firing women they might know are planning on having a child in order to find a suitable replacement right away.

Benefits of changing? * An environment where employees will not be angry at a company for not offering benefits that many deem essential. * Direct connection to the newborns when they need their mothers most, one example being breastfeeding. * Opportunities for the company to have committed workers who know they can keep their jobs after leaving instead of continuous turnover. * Possibility of training or temporary workers having jobs to fill these work voids. An unemployed person still collects a paycheck, so the company might as well provide opportunities for some to train or work. * Happier mothers who spend more time with their children. * Lower stress levels and more attention/devotion to the newborns when they need their parents the most. * Removal of the potential stress of losing one's job merely due to pregnancy.
The economic impact may be significant but it does not necessarily mean it's always detrimental. "Paid maternity leave is also good for business. After California instituted paid medical leave, a survey in 2011 by the Center for Economic and Policy Research found that 91% of employers said the policy either boosted profits or had no effect. They also noted improved productivity, higher morale and reduced turnover" (Wojcicki).
Conclusion

The question of paid maternity leave being available is more than feasible. Many countries with a lower GDP have been doing it successfully for years. It's likely that one of the main reasons this hasn't happened yet is due to the cost associated with it. It is not untrue that there wouldn't be some sort of economic impact in the short term. In the long term, however, this is a win-win scenario. If paid maternity leave becomes standard, the overall benefit to society goes beyond just raising happier children and having less stressed working mothers. A minor change can cause a ripple throughout society for an overall improvement in ways that have been proven, but even in ways that we don't quite know yet.
Recommendations
Based on the fact and research, it is clear that paid maternity leave is something that needs to happen. Paid maternity leave is not something one hears in any countries as being a failure. In fact, it's not even a debate for these countries, it's simply something that needs to be offered. The fact that not only does the US not offer it but people will argue against it, comes to show how out of touch we are with certain living standards that we don't have. The recommendation would be to implement a phasing system to lessen the negative impacts from initial implementation. Paid maternity leave could start as a minor or basic leave of absence, such as the equivalent of one to two weeks of paid vacation. As this becomes the standard, this could be increased to 1-3 months, offering ample time for companies to prepare for this, as well as the previously mentioned possibility of training and/or students to take over during these times. It's likely that an intern or student taking over could get experience, and the cost of a less experienced worker would also not be as much as a permanent replacement. With a happier mother, she will be just as productive when she returns to work, and more likely to remain in the company in the long run, saving them on costs in training, as well as increasing overall employee retention.
References

Aitken, Z., Garrett, C. C., Hewitt, B., Keogh, L., Hocking, J. S., & Kavanagh, A. M. (2015). Thematernal health outcomes of paid maternity leave: A systematic review. Social Science & Medicine, 13032-41. doi:10.1016/j.socscimed.2015.02.001
Child Health USA 2013. (n.d.). Retrieved July 28, 2015, from http://mchb.hrsa.gov/chusa13/index.html
Cohn, J. (n.d.). Working Parents Should Be Very Happy About This Obscure Senate Vote. Retrieved July 12, 2015, from http://www.huffingtonpost.com/2015/04/05/paid-sick-days_n_6999830.htm
Map: The average cost for child care by state - The Boston Globe. (n.d.). Retrieved July 28, 2015, from https://www.bostonglobe.com/2014/07/02/map-the-average-cost-for-child-care- state/LN65rSHXKNjr4eypyxT0WM/story.html Maternity Leave In The U.S. Vs. The Rest Of The World [Motion picture]. (2014). Buzzfeed.
Pregnant pauses. (2014, December 4). Retrieved July 12, 2015, from http://www.economist.com/blogs/democracyinamerica/2014/12/women-and-work
Should Government Mandate Paid Maternity Leave?. Wall Street Journal (Online). p. 1. (2014, December 23).
State of the World's Mothers 2015. (2015). Retrieved July 12, 2015, from http://www.savethechildren.org/atf/cf/{9def2ebe-10ae-432c-9bd0-df91d2eba74a}/SOWM_2015.PDF
Stellman, J. (1998). Maternity Protection in Legislation. In Encyclopaedia of occupational health and safety. Volume 1 (4.th ed.). Geneve: International Labour Office/ ILO/ International Labour Organisation.
The Economics of Paid and Unpaid Leave. (2014, June 1). Retrieved July 10, 2015, from https://www.whitehouse.gov/sites/default/files/docs/leave_report_final.pdf
US Department of Labor. (n.d.). Retrieved July 28, 2015, from http://www.dol.gov/wb/stats/stats_data.htm