


Michele Ogilvie
Jan 25, 2022
The Bahamas, Norway and United States
Categories:
Families, Work, Poverty Health
There has been a great deal of discussion worldwide about family leave and the state's role to support families at the time of the birth of a child. Why does this matter? Most people will tell you that it is because it enhances the health and well-being of a parent(s), which affects the health outcomes of their children, and so on. In turn, it is an essential factor in determining the health of the future labor force and the well-being of future society as a whole in any country. In research for this article, I found some excellent comparisons from very different nations: The Bahamas and Norway.
The Bahamas is an island nation of 700 islands and beautiful beaches, and it is also a popular tourist attraction. The country has a thriving tourism industry with a successful hotel and services industry. Tourism constitutes 70-80% of the country's GDP (Gross Domestic Product), employing more than half of its workforce. Bahamas has the highest largest GDP per capita in the Caribbean islands ($33,516 USD$).
In the Bahamas, female workers are entitled to paid maternity leave if they work for the employer for more than twelve weeks. The maternity leave lasts for up to nine weeks, once every three years. The employer and the national government pay for maternity leave through a split contribution- 40 percent contribution from the employer and 60 percent from the country's social security system.
Norway is one of the most generous countries in terms of paternal leave. Its policy allows 12 months of departure from work for each birth and a "parental benefit," which stands as a source of income for new parents during the leave period. Both parents can take leave until the child reaches age 3.
Norway's leave policy has helped narrow the gender income gap down to 13%. "The retention of women" in the workforce has also helped Norway collect higher tax revenue, strengthening the economy. These tax benefits contribute to Norway's high GDP per capita, which now stands at $89,741, a statement of the country's economic prosperity. For many people worldwide, there is a stigma about paternal leave. Nordic countries aimed to reduce that stigma with a campaign to normalize paternal leave. Now, about "90% of Norwegian fathers" take paternal leave, bringing wide-ranging benefits on a household level as well as a national level.
Norway's example shows how parental leave policies can benefit families, children, and the national economy. Better parental leave is one push toward building a more prosperous future. When children receive proper care in the first years of life, they have a better chance of breaking generational cycles of poverty.
As you can see from the above chart, The United States is the only wealthy country in the world without any guaranteed paid parental leave at the national level. Federal law guarantees new parents just six weeks of unpaid leave, which does not cover all workers. Perhaps this is the root of the high morbidity of babies in states like mine, Florida (the author). Some other States and the District of Columbia mandate a degree of paid parental leave. Parents that do not have this benefit are more likely to leave their job permanently, have greater difficulty with childcare responsibilities, and live in poverty.
A report commissioned by the United States Congress confirms these findings. "The Economic Benefits of Paid Leave" identifies 27 reasons families in the US would benefit from paid leave. Unfortunately, the issue has become very political with polarized viewpoints.
Notwithstanding the politics, the evidence is clear. So what can you do at a local level? There is a tight labor market in many places, and employers are willing to offer more benefits to entice workers. Encourage your children starting in the workforce to work for employers with this benefit. Support businesses that have paid parental leave programs and make your voice heard. Consider writing a letter to the human resource departments of companies asking them to consider paid parental leave. Please encourage them to look at the emerging market of parental leave insurance. The potential costs may be more feasible for a company to consider. Discuss insurance products with local insurance agencies and encourage them to carry and sell them in their local communities. Bring the issue up to your local Chambers of Commerce. Be prepared to show them the evidence. Create an organized group of working parents that are like-minded to amplify your voice.
Almost all of us believe in the sanctity of families, a cornerstone of any society. What are you willing to do to support that belief? It is time to overcome the misplaced fears about this issue.
Source:
Source:

Catalog #:
1221.101.01.012522