Women and Low-Skilled Workers: Other Countries' Policies and
Practices That May Help These Workers Enter and Remain in the
Labor Force (14-JUN-07, GAO-07-817).
Increasing retirements and declining fertility rates, among other
factors, could affect the labor force growth in many developed
countries. To maintain the size and productivity of the labor
force, many governments and employers have introduced strategies
to keep workers, such as women and low-skilled workers, in the
workforce throughout their working lives. Because other countries
have also undertaken efforts to address issues similar to those
occurring in the U.S., GAO was asked to (1) describe the policies
and practices implemented in other developed countries that may
help women and low-wage/low-skilled workers enter and remain in
the labor force; (2) examine the targeted groups' employment
following the implementation of the policies and practices; and
(3) identify the factors that affect employees' use of workplace
benefits and the resulting implications. We conducted an
extensive review of workplace flexibility and training strategies
in a range of developed countries, and we conducted site visits
to selected countries. Our reviews were limited to materials that
were available in English. While we identified relevant national
policies in the U.S., we did not determine whether other
countries' strategies could be implemented here. Labor provided
technical comments, and State had no comments on this report.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-07-817
ACCNO: A70747
TITLE: Women and Low-Skilled Workers: Other Countries' Policies
and Practices That May Help These Workers Enter and Remain in the
Labor Force
DATE: 06/14/2007
SUBJECT: Child care programs
Comparative analysis
Employee training
Employees
Employment
Employment assistance programs
Family leave
Fringe benefits
Labor force
Parental leave
Policy evaluation
Women
Foreign countries
Policies and procedures
Denmark
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GAO-07-817
* [1]Results in Brief
* [2]Background
* [3]Countries Have Various Policies and Practices That May Help
* [4]Family Leave Policies Differed In Four Major Ways, Including
* [5]Flexible Working Arrangements Help Employees Balance Work an
* [6]Childcare Policies Assist Working Parents
* [7]Training Programs Can Be Targeted at the Unemployed or Low-S
* [8]Although Certain Workplace Policies Are Associated with Incr
* [9]Childcare and Paid Family Leave Are Associated with an Incre
* [10]The Effects of Most Workplace Policies and Practices, Includ
* [11]While Several Factors Affect Uptake, Employees' Use of Workp
* [12]Concluding Observations
* [13]Agency Comments
* [14]GAO Contact
* [15]Acknowledgments
* [16]GAO's Mission
* [17]Obtaining Copies of GAO Reports and Testimony
* [18]Order by Mail or Phone
* [19]To Report Fraud, Waste, and Abuse in Federal Programs
* [20]Congressional Relations
* [21]Public Affairs
GAO
June 2007
Report to Congressional Requesters
United States Government Accountability Office
WOMEN AND LOW-SKILLED WORKERS
Other Countries' Policies and Practices That May Help These Workers Enter
and Remain in the Labor Force
GAO-07-817
Contents
Letter 1
Results in Brief 2
Background 4
Countries Have Various Policies and Practices That May Help Some Women and
Low-Wage/Low-Skilled Workers Enter and Remain in the Labor Force 10
Although Certain Workplace Policies Are Associated with Increased
Participation in the Labor Force, in General, Effects Are Not Definitive
20
While Several Factors Affect Uptake, Employees' Use of Workplace Benefits
Can Have Implications for Employers and Employees 25
Concluding Observations 28
Appendix I Objectives, Scope and Methodology 30
Appendix II Selected Labor Market Statistics 32
Appendix III Maternity, Paternity, and Parental Leave Provisions 34
Appendix IV GAO Contact and Staff Acknowledgments 41
Related GAO Products 42
Tables
Table 1: Total Fertility Rates, Women's Labor Market Participation, and
Part-Time Work 9
Table 2: Total Federal Tax Revenue as a Percentage of GDP 10
Table 3: Select Government-Supported Childcare Initiatives 15
Table 4: Educational Attainment Ages 25-64, 2004 32
Table 5: Percentage of Full-time Workers Earning Less than Two-Thirds of
the Median Wage of Full-time Workers 32
Table 6: Public Expenditures on Training Programs 33
Table 7: Gross National Income, Per Capita, 2005 33
Table 8: Maternity Leave 34
Table 9: Paternity Leave 37
Table 10: Parental Leave 39
Abbreviations
CCDF Child Care and Development Fund
EC European Commission
EU European Union
FMLA Family and Medical Leave Act
HHS Department of Health and Human Services
ITA individual training account
OECD Organisation for Economic Co-operation and Development
SDI State Disability Insurance
TANF Temporary Aid for Needy Families
UK United Kingdom
WIA Workforce Investment Act
WOTC Work Opportunity Tax Credit
WtWTC Welfare-to-Work Tax Credit
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
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separately.
United States Government Accountability Office
Washington, DC 20548
June 14, 2007 June 14, 2007
The Honorable Charles Schumer
Chairman
The Honorable Carolyn B. Maloney
Vice-Chair
Joint Economic Committee
The Honorable Jack Reed
United States Senate
The Honorable John D. Dingell
House of Representatives
The Honorable John D. Dingell
House of Representatives
Increasing retirements and declining fertility rates, among other factors,
could affect the labor force growth in many developed countries. To
maintain the size and productivity of the labor force, many governments
and employers in developed countries have introduced strategies to keep
workers who face greater challenges in maintaining jobs and incomes, such
as women and low-wage/low-skilled workers, in the workforce throughout
their working lives. To help women remain in the labor force consistently,
many governments and employers have established leave policies and
flexible working arrangements to assist women in simultaneously managing
responsibilities both inside and outside the workplace. At the same time,
rapid technological change and global competition have limited the
employment opportunities for some low-skilled workers. This development
has drawn attention to the need for investing in education and training to
help low-skilled workers find jobs and remain in the labor force.
Increasing retirements and declining fertility rates, among other factors,
could affect the labor force growth in many developed countries. To
maintain the size and productivity of the labor force, many governments
and employers in developed countries have introduced strategies to keep
workers who face greater challenges in maintaining jobs and incomes, such
as women and low-wage/low-skilled workers, in the workforce throughout
their working lives. To help women remain in the labor force consistently,
many governments and employers have established leave policies and
flexible working arrangements to assist women in simultaneously managing
responsibilities both inside and outside the workplace. At the same time,
rapid technological change and global competition have limited the
employment opportunities for some low-skilled workers. This development
has drawn attention to the need for investing in education and training to
help low-skilled workers find jobs and remain in the labor force.
Because the experiences of other countries may provide useful information
for U.S. policymakers, you requested that we examine the policies and
practices in other developed countries that may attract and retain
individuals who otherwise might not be in the workforce, or who might drop
in and out of the labor force more than other groups. Specifically, you
asked us to (1) describe the policies and practices implemented in other
developed countries that may help women and low-wage/low-skilled workers
enter and remain in the labor force; (2) examine the change in the
targeted groups' employment following the implementation of the policies
and practices; and (3) identify the factors Because the experiences of
other countries may provide useful information for U.S. policymakers, you
requested that we examine the policies and practices in other developed
countries that may attract and retain individuals who otherwise might not
be in the workforce, or who might drop in and out of the labor force more
than other groups. Specifically, you asked us to (1) describe the policies
and practices implemented in other developed countries that may help women
and low-wage/low-skilled workers enter and remain in the labor force; (2)
examine the change in the targeted groups' employment following the
implementation of the policies and practices; and (3) identify the factors
that affect employees' use of workplace benefits and the resulting
workplace implications.
To address these issues, we conducted an extensive literature review of
workplace flexibility and training strategies in a range of developed
countries to provide descriptive information about some of their policies
and practices. We conducted site visits or in-depth interviews with
various officials in four developed countries--Canada, the United Kingdom
(UK), the Netherlands, and Denmark--selected for the variety of
work-family and workforce development policies they have adopted, which
include a range of policies and practices targeted specifically to women
and low-wage/low-skilled workers. We interviewed government officials,
researchers, private employers, and trade associations or unions in each
of the countries about their experiences with such policies and practices.
We also visited Belgium to meet with officials from several European Union
(EU) institutions, such as the European Commission and the European
Foundation for the Improvement of Living and Working Conditions. We
reviewed four other countries (France, Ireland, New Zealand, and Sweden)
based on policies and practices they had implemented for our target
groups. Information about these countries' policies/practices came from
extensive literature reviews and discussions with U.S. and foreign-based
researchers.
To provide context, we identified relevant national policies in the United
States. However, we did not conduct a comprehensive review of similar
workplace flexibility and training strategies in the United States, nor
did we seek to determine whether other countries' strategies could be
implemented here. Additionally, our review of related laws and regulations
of the other countries relied on secondary sources of analysis rather than
independent analysis of foreign laws. Our review of laws and regulations
was limited by the extent that specific information from secondary sources
was accessible and written in English. For a more detailed explanation of
our methodology, see appendix I.
We conducted our work between July 2006 and May 2007 in accordance with
generally accepted government auditing standards.
Results in Brief
Governments and employers in the countries we studied have developed a
variety of laws, government policies, and formal and informal practices,
including periods of leave, flexible work schedules, childcare, and
training for women and low-wage/low-skilled workers. Each of the countries
we reviewed has some form of paid family leave, such as maternity,
paternity, or parental leave, that attempts to balance the needs of
employers and employees and, often, attempts to help women and
low-wage/low-skilled workers enter and remain in the workforce. For
example, in Denmark, employed women with a work history of at least 120
hours in the 13 weeks prior to the leave are allowed 18 weeks of paid
maternity leave. In addition to family leave for parents, countries
provide other types of leave and have established workplace flexibility
arrangements for workers. U.S. federal law allows for up to 12 weeks of
unpaid leave for most workers. All of the countries also subsidize
childcare for some working parents to some extent through a variety of
means, such as direct benefits to parents for childcare and tax credits.
For example, in Canada, the government provides direct financial support
of $100 a month per child, to eligible parents for each child under age 6.
Last, governments and employers have a range of training and
apprenticeship programs to help unemployed people find jobs and to help
those already in the workforce advance in their careers. For example,
Denmark has had a public system in place since the mid-1960s that allows
low-skilled workers to receive free education, wage subsidies, and funding
for transportation costs. About one-half of unskilled workers took part in
training courses that were either publicly financed or provided privately
by employers in the past year, according to a Danish researcher.
Although research shows that the provision of some workplace benefits,
such as paid family leave, is associated with increased employment,
research on training programs has shown mixed results, and few evaluations
of certain policies and practices have been conducted. For example,
evidence from cross-national studies shows that the availability of
childcare--particularly when it is subsidized and regulated with quality
standards such as a high staff-to-child ratio--is positively related to
women's employment. These and other cross-national studies also indicate
that paid maternity leave helps women enter and remain in the labor force.
For example, one study examining paid maternity leave of varying lengths
of time in several Western European countries, including Denmark, France,
Ireland, and Sweden, found that such leave may increase women's employment
rate by about 3-4 percent. In addition, research demonstrates that the
provision of leave with job protection reduces the amount of time that
women spend out of the labor force. Moreover, a study reviewing Sweden's
leave policies determined that parental leave set aside for the father
allows women to shorten their maternity leave and limit career
disruptions. Research shows mixed results in whether training helps the
unemployed get jobs. However, nearly all evaluations of Canadian and U.S.
training programs show that the programs helped the unemployed to get
jobs, according to a literature review by the Canadian government.
Furthermore, it is difficult to attribute effects to a specific policy for
a variety of reasons, and evaluations may be difficult to conduct. Some
policies simply codified into law a widely used practice. For example, a
Dutch official told us that it was very common for Dutch women to choose
to work part-time even before legislation passed that promoted employees'
rights to reduce their working hours.
Many factors can affect whether employees take full advantage of benefits,
and use of these benefits can have implications for employers and
employees. For example, an EU report that examined several of the
countries we studied found that employees are more likely to take family
leave if they feel that their employer is supportive. In addition, the
province of Saskatchewan in Canada provides 12 days of unpaid leave per
year, but low-wage workers cannot always afford to take it, according to a
Saskatchewan labor official. Employees' personal experiences can also
affect their uptake of benefits. For example, employers and governments
may have to convince employees to take advantage of workplace training,
because these workers may have had negative experiences with education in
the past, according to employee representatives from Denmark's largest
trade union confederation. Further, some employers may face issues when
employees do use the available benefits. An employer in Saskatchewan,
Canada, for example, said that although he was able to hire temporary help
to cover an employee who was on maternity leave, he faced an unexpected
staff shortage when the employee decided toward the end of her leave not
to return to work and the temporary employee had found another job. The
uptake of available benefits can also have larger implications for an
employee's career. Long parental leaves, for example, may lead to an
actual or perceived deterioration in women's labor market skills,
according to an EU report, and can have negative effects on future
earnings. In addition, since employers tend to target their training to
higher skilled and full-time workers, employees who opt to work part-time
may have fewer opportunities for on-the-job training that could help them
advance, according to researchers in the Netherlands.
We provided a draft of this report to the Departments of Labor and State
for their review and comment. The Department of Labor provided technical
comments, which we have incorporated where appropriate. The Department of
State did not have comments on this report.
Background
According to the Department of Labor, in 2005, about 60 percent of U.S.
women age 16 and older were in the workforce, compared to 46 percent in
1975. Some U.S. employers offer alternative work arrangements to help
workers manage both work and other life responsibilities.^1 One type of
alternative work arrangement allows workers to reduce their work hours
from the traditional 40 hours per week, such as with part-time work or job
sharing.^2 Some arrangements adopted by employers, such as flextime, allow
employees to begin and end their workday outside the traditional 9-to-5
work hours. Other arrangements, such as telecommuting from home, allow
employees to work in an alternative location. Childcare facilities are
also available at some workplaces to help workers with their care giving
responsibilities. In addition to benefiting workers, these arrangements
may also benefit employers by helping them recruit and retain workers.^3
Federal law establishes minimum levels of unpaid leave for individuals
under certain circumstances. The Family and Medical Leave Act (FMLA) of
1993 enables certain employees to take up to 12 weeks per year of unpaid
leave upon the birth or adoption of a child, or to care for qualifying
family members or themselves in the event of a serious health condition
with the guarantee of a similar job upon return.^4 The law applies to
private companies with 50 or more employees, and all federal, state, and
local government agencies.^5 To be eligible for leave, employees seeking
leave must have worked for their employer for at least 1 year and for over
1,250 hours during the last year.
^1For a listing of companies that have implemented various workplace
flexibility initiatives, see the Families and Work Institute,
[22]www.familiesandwork.org , and the Great Place to Work Institute,
[23]www.greatplacetowork.com .
^2Part-time work schedules allow employees to reduce their work hours from
the traditional 40 hours per week in exchange for a reduced salary and
possibly pro rated benefits. Job sharing--a form of part-time work--allows
two employees to share job responsibilities, salary, and benefits of one
full-time position.
^3Paid leave had been the most costly benefit to employers, but by 2005,
the cost of health insurance equaled that of paid leave. See GAO, Employee
Compensation: Employer Spending on Benefits Has Grown Faster than Wages,
Due Largely to Rising Costs for Health Insurance and Retirement Benefits,
GAO-06-285 (Washington, D.C.: Feb. 24, 2006).
^4However, employers are not required to extend this job protection to
certain "highly compensated employees," as that term is defined by the
Act, 29 U.S.C. S 2614(b).
^5Governmental agencies do not have to meet the 50-employee test.
Some state laws provide greater family or medical leave rights than the
federal law.^6 In July 2004, California became the first state in the
country to offer a comprehensive paid family leave program.^7 The program
allows workers to receive up to 6 weeks per year of partial wage
replacement for leave taken to care for a seriously ill family member
(child, spouse, parent, or domestic partner) or to care for a child within
1 year of birth or placement for adoption or foster care. The program,
which is administered by the State Disability Insurance (SDI) system, is
funded entirely by employee contributions. The paid family leave law
requires a 1-week waiting period and applies to all employees who pay into
the SDI system, regardless of employer size. In May 2007, Washington state
enacted paid family leave legislation that grants up to 5 weeks of paid
leave a year to certain employees to care for a newborn or newly adopted
child.^8
The federal government also provides childcare subsidies for certain
low-income families, and tax breaks for most parents, both to support
their ability to work and to balance work-family responsibilities. Under
programs funded by the Child Care and Development Fund (CCDF),^9 Temporary
Assistance for Needy Families (TANF) and state resources, states have the
flexibility to serve certain types of low-income families. The Head Start
program provides comprehensive early childhood education and development
services to low-income preschool children, on a part- or full-day basis.
Further, the Child and Dependent Care Tax Credit allows parents to reduce
their tax on their federal income tax return if they paid someone to care
for a child under age 13 or a qualifying spouse or dependent so they could
work or look for work.^10 The credit is a percentage of the amount of
work-related child and dependent care expenses paid to a care provider.
The credit can be up to 35 percent of qualifying expenses, depending upon
income.
^6See National Partnership for Women and Families, Expecting Better: A
State-by-State Analysis of Parental Leave Programs (Washington, D.C.:
2005), [24]www.nationalpartnership.org .
^7The law was passed in September 2002 and became effective on January 1,
2004, with benefits payable for leave commencing on or after July 1, 2004.
California's paid family leave is not a form of job protection. The
program does not guarantee an employee the right to take leave, nor does
it require an employer to hold an employee's job open while the employee
is on leave. Paid leave can be taken all at one time, or
intermittently--i.e., in hourly, daily, or weekly increments. While the
previously existing State Disability Insurance benefit provides partial
wage replacement to individuals who cannot work because of their own
illness or injury, the new paid family leave benefit provides partial wage
replacement to individuals who must take time off from work to care for a
seriously ill family member or new child. Workers who take leave under the
paid family leave program receive approximately 55 percent of their wages,
subject to a statutory cap. Only workers who pay into the State Disability
Insurance system--i.e., almost all private sector employees and some
public sector employees--are eligible for paid leave. The paid family
leave law does not require an employee to work a minimum number of hours
or days before becoming eligible for paid family leave benefits.
^8Beginning in October 2009, parents of newborn and newly adopted children
who have worked 680 hours or more in the prior year will be able to take
up to 5 weeks off work with a benefit of $250 per week, pro-rated for
part-time workers. While the leave was initially funded through an
employee-paid payroll tax, the bill that passed establishes a joint
legislative task force to recommend, among other things, a funding source
for the program before January 1, 2008. The Washington law does provide
some employees who take leave with job protection.
The federal government also offers workforce development and training
programs designed to assist low-wage/low-skilled workers in the United
States. The Workforce Investment Act of 1998 (WIA)^11 requires states and
localities to bring together a number of federally funded employment and
training services into a single system--the one-stop system. Funded
through four federal agencies and administered by the U.S. Department of
Labor, these programs provide services through a statewide network of
one-stop career centers. Low-skilled workers and dislocated workers can
choose the training they determine best for themselves, working in
consultation with a case manager. Additionally, the federal government
provides incentives for companies to hire low-income workers, public
assistance recipients, and workers with disabilities. The Work Opportunity
Tax Credit is a federal tax credit that offers employers tax breaks when
they hire certain categories of job seekers, including TANF recipients.
The credit is designed to help people move from welfare to work and gain
on-the-job experience. Additionally, the Welfare-to-Work Tax Credit
(WtWTC) is a federal income tax credit that encourages employers to hire
long-term TANF Assistance recipients.
^9The Child Care and Development Fund (CCDF) is administered by the
Department of Health and Human Services (HHS) and provides block grants to
states, which use the grants to subsidize the child care expenses of
families with children under age 13, if the parents are working or in
school and family income is less than 85 percent of the state median.
Child care services are provided on a sliding fee scale basis, and parents
may choose to receive assistance through vouchers or certificates, which
can be used with a provider of the parents' choice, including religious
providers and relatives.
^10To qualify, the spouse, children over the age of 13, and other
dependents must be physically or mentally incapable of self-care and must
have the same principal abode as the taxpayer for more than one-half of
the taxable year.
^11GAO, Workforce Investment Act: Employers Found One-Stops Centers Useful
in Hiring Low-Skilled Workers; Performance Information Could Help Gauge
Employer Involvement, [25]GAO-07-167 (Washington, D.C.: December 2006).
Most of the countries we studied are members of the European Union
(EU);^12 as such, they need to take EU laws into account when formulating
their policies. EU legislation on employment-related issues typically
provides minimum standards or basic rights for individuals across member
states. For example, the 1997 directive on equal treatment of part-time
work mandates that people holding less than full-time jobs be given pro
rated pay and benefits without discrimination.^13 EU directives are
generally binding in terms of the results to be achieved,^14 but an
opt-out option occasionally allows member states to delay action.
According to an EU official, the Union also sets targets to be achieved
voluntarily at some future date. Since 2000, for example, member states
have collectively agreed to increase the number of women in employment,
the number of adults in lifelong learning, and the provision of childcare
by the end of the decade. The EU offers financial support to its member
states to help them succeed in employment goals.^15 For example, countries
can request money from the European Social Fund (ESF) for public or
private programs that improve people's skills and employability.^16
Other differences are relevant to consideration of the workforce
attachment policies of our study countries. Although U.S. women have high
levels of educational attainment, their workforce participation, in
general, is lower than that of the countries we studied. In 2004, the
educational attainment of women ages 25-64 in the United States, at 13.4
years, surpassed that of women in all other study countries (see app. II,
table 4). While a higher education level is generally associated with
greater likelihood of labor force participation, labor force participation
for U.S. women is lower than that in any of our study countries except
Ireland and New Zealand. For example, in Denmark, labor force
participation was 85 percent, compared to 75 percent in the United States,
and 68 percent in Ireland. In the Netherlands, a country where 36 percent
of all employment is part-time, women constitute more than three-quarters
of employees working less than 30 hours per week (see table 1).
^12These include Denmark, France, Ireland, the Netherlands, Sweden and the
UK. The EU is an economic and political union established in 1993 by the
Maastricht Treaty to expand the scope of the European Economic Community
and provide for the creation of a European Central Bank and the adoption
of a common currency, the euro.
^13EC Council Directive 97/81/EC; members may choose to make exceptions
for workers engaged in casual work.
^14 Member states are bound by the objectives laid down by the directives
but are left the choice of how to achieve these objectives.
^15The EU will allocate 0.9 billion euros, or more than $1 billion, for
education and training in its 2007 budget, a 31 percent increase from
2006.
^16The ESF was created in 1957 and is EU's main source of support, helping
member states combat unemployment, prevent people from dropping out of the
labor market, and promote training.
Table 1: Total Fertility Rates, Women's Labor Market Participation, and
Part-Time Work
Part-time
employment as
Total Labor force a proportion Women's share
fertility participation rates of of total of part-time
Country rate^a women, ages 25-54, 2004 employment employment
Sweden 1.75 85.3% 13.5% 67.1%
Denmark 1.78 84.9% 18.0% 64.1%
Canada 1.53 81.5% 18.3% 68.6%
France 1.91 80.3% 13.6% 79.1%
The 1.73 77.4% 35.7% 76.3%
Netherlands
The UK 1.76 76.8% 23.6% 77.3%
The U.S. 2.05 75.3% 12.8% 68.4%
New Zealand 2.01 75.2% 21.7% 74.8%
Ireland 1.93 67.9% 18.6% 79.1%
Source: OECD Employment Outlook 2006: Boosting Jobs and Income (OECD,
2006) and OECD in Figures, 2006-2007 (OECD, 2006).
aThe fertility rate is defined as the total number of children born per
1,000 women of childbearing age.
Differences in taxation across countries reflect national choices, which
are largely determined by economic and social priorities. The ratio of
total tax revenues to gross domestic product (GDP) is a commonly used
measure of state involvement in national economies. Countries with high
tax-to-GDP ratios generally pay more from the public budget for services
that citizens would have to pay for themselves--or do without--in
lower-taxed countries. In 2004, Sweden had the highest tax revenue as a
percentage of GDP among our study countries, at 50.4 percent. Denmark came
next at 48.8 percent, followed by France at 43.4 percent. The United
States had the lowest tax-to-GDP ratio in 2004, at 25.5 percent (see table
2).
Table 2: Total Federal Tax Revenue as a Percentage of GDP
Country Percentage of GDP, 2004
Sweden 50.4
Denmark^a 48.8
France^a 43.4
Netherlands 37.5
United Kingdom 36.0
New Zealand 35.6
Canada 33.5
Ireland 30.1
United States 25.5
Source: OECD Revenue Statistics 2006.
aThe total tax revenue has been reduced by the amount of the capital
transfer that represents uncollected taxes.
Countries Have Various Policies and Practices That May Help Some Women and
Low-Wage/Low-Skilled Workers Enter and Remain in the Labor Force
Governments and employers in the countries we studied developed a variety
of laws, government policies, and formal and informal practices, including
periods of leave, flexible work schedules, childcare, and training. Each
of the countries we reviewed has some form of paid family leave, such as
maternity, paternity, or parental leave, that attempts to balance the
needs of employers and employees and, often, attempts to help women and
low-wage/low-skilled workers enter and remain in the workforce. In
addition to family leave for parents, countries provide other types of
leave, and have established workplace flexibility arrangements for
workers. All of the countries also subsidize childcare for some working
parents through a variety of means, such as direct benefits to parents for
childcare and tax credits. Last, governments and employers have a range of
training and apprenticeship programs to help unemployed people find jobs
and to help those already in the workforce advance in their careers.
Family Leave Policies Differed In Four Major Ways, Including Eligibility
Requirements and Length, Payment, and Flexibility
Many countries have developed and funded parental leave policies to assist
employees in combining their work and family lives, recognizing, in part,
the need to promote women's participation in the labor force. A 1996
directive of the European Council requires all countries in the
EU--including each of the European countries we reviewed--to introduce
legislation on parental leave that would provide all working parents the
right to care for their newborn or newly adopted child for at least 3
months while retaining a position of equal status, recommending that
benefits be paid during that time. In the U.S., the FMLA allows eligible
employees approximately 3 months of unpaid leave that may be used for
these purposes. (For an overview of the policies in our study countries,
see app. III.) Family leave policies in the countries we studied were
generally funded through tax revenues and general revenues. Because some
of these countries are social welfare states, their tax revenues represent
a greater share of their GDP, allowing for the funding of various
policies. For example, Canada, the UK, and the Netherlands fund paid leave
policies in part through national insurance programs, which use payroll
taxes paid by employers and employees. Denmark's paid maternity,
paternity, and parental leaves are financed by income tax revenues through
an 8 percent tax on all earned income.^17
Eligibility provisions are a part of most leave policies we reviewed, and
sometimes the service time with an employer determines the amount of leave
a parent can take. Many national leave policies in our study countries
require employees to work for a period of time before they can take leave,
giving employers assurances that employees are committed to their jobs.
For example, in Denmark, employed women with a work history of at least
120 hours in the 13 weeks prior to the leave are allowed 18 weeks of paid
maternity leave.^18 In some countries, though, all parents are entitled to
take family leave, which in some cases is paid. In Sweden, all parents are
entitled to parental benefits whether or not they are working. In the UK,
by law, all expectant employees can take up to 52 weeks of maternity
leave, regardless of how long they have worked for their employer.
To enhance workers' ability to take leave, the countries we studied
replace all or part of the wages they forgo while on leave. Dutch
employees on maternity leave are entitled to receive 100 percent of their
wages, up to a maximum; their partners receive their regular rate of pay
from their employers. In the UK, women who meet qualifying conditions of
length of service and who earn a minimum amount for the national insurance
system--or, on average, 87 British pounds per week--can receive payment
generally equal to 90 percent or less of their average weekly earnings.^19
In Ireland, women can generally be paid at 80 percent of earnings, subject
to her contributions into the social insurance system. However, employers
may offer more leave than legally required.
^17The 8 percent mandatory contribution also funds other social benefits,
including sick leave, active labor market policies, and retirement
policies, according to a government official.
^18Persons who are self-employed, have completed vocational training for a
period of 18 months, are doing paid work placement as part of a vocational
training course, or are unemployed may also be eligible for cash benefits
following the birth of a child.
Because leave is intended to help parents balance career responsibilities
with caring--not just for newborns, but for children in general--many
countries allow parents to take their allotted parental leave all at once
or to divide it into parts. In the Netherlands, Sweden, Denmark, and the
UK, parents have the option of using their leave flexibly by dividing it
into discrete parts, sometimes with the consent of an employer. In the
Netherlands, for example, parents may divide the leave into a maximum of
three parts and can take the leave simultaneously or following one
another. The Netherlands, Sweden, and Denmark allow parents the use of
parental leave until their child turns either 8 or 9, while the UK allows
the use of parental leave until a child turns 5.
Recognizing that familial obligations may extend beyond an employee's
children, some countries allow workers to take leave to care for family
members. The amount of time workers can take to care for family members
varies among the countries we reviewed. In Canada, all employees are
eligible to take 8 weeks of unpaid leave to provide care and support to a
seriously ill family member or someone considered as a family member.^20
In other countries, the leave is more limited. New Zealand requires that
all employers provide a minimum of 5 days of paid sick leave for an
eligible employee's own illness or to care for family members.^21
19The rate of statutory maternity pay is 90 percent of a woman's average
weekly earnings for the first 6 weeks, followed by the lesser of a flat
rate, currently -L-108.85 a week, or 90 percent of her average weekly
earnings for the remaining 33 weeks. Employers who are liable to pay
statutory maternity pay may reclaim 92 percent of the amount they pay from
Her Majesty's Revenue and Customs. Statutory payment was extended in April
2007 from 26 to 39 weeks.
^20The definition was expanded in 2006 beyond those caring for parents,
children, and spouses to include persons caring for other family
members--such as siblings, grandparents, aunts, and uncles--and others
considered like family members. Persons must be deemed at risk of dying
within 26 weeks.
^21To be eligible, an employee must have worked for 6 months continuously
for the same employer or be deemed eligible at the discretion of their
employer. The leave may be used for an employee's own illness or can be
used to care for a spouse or dependent, including a child or elderly
parent.
Flexible Working Arrangements Help Employees Balance Work and Private
Responsibilities
A few countries have developed national policies that promote flexible
work opportunities, apart from leave, that may help women and
low-wage/low-skilled employees join and stay in the workforce. In the
Netherlands, by law all eligible employees--whether or not they are
parents--have the right to reduce or increase working hours, no matter
their reason for doing so.^22 Employers can deny the request only if the
change would result in a serious obstacle, such as not having enough other
workers to cover the hours an employee wishes to reduce. Similarly, the
UK's 2003 Right to Request Flexible Working and Duty to Consider law
allows workers to request changes to the hours or location of their work,
to accommodate the care of children and certain adults.^23 According to
government officials from the UK Departments of Trade and Industry, and
Communities and Local Government, this law provides the government with a
cost-effective means to help women return to work. Although similar to the
law in the Netherlands, this law provides employees with less defined
rights, and employers in the UK may refuse an employee's request when the
proposed arrangement is not supportable by the needs of the business.
Similarly, flexible working opportunities for employees are often adjusted
or developed by individual employers. Many employers adjusted the Right to
Request law by extending to all employees the benefits it required,
according to government officials from the UK Departments of Trade and
Industry and Communities and Local Government. In other cases employers
have developed new opportunities. One local government employer in the UK
offers employees the ability to take a career break for up to 5 years to
care for children or elders, with the right to return to the same
position. Employees of the organization are also able to take time off
when children are home on holidays, share the responsibilities of one
position with another employee through the practice of job sharing, and
vary their working hours. In Saskatchewan, Canada, one employer reported
allowing employees to average their work hours over a 2-week period,
giving them the ability to accumulate overtime hours and have a sense of
control over their time. In Denmark, a large employer allowed an employee
who was returning to work from a long-term illness to gradually increase
her working hours until she reached a full-time schedule over the course
of several months. Flexible working arrangements in the United States have
been adopted by some employers, but are not mandated in federal law.
^22The law is the Working Hours Adjustment Act of 2000. To be eligible for
the Working Hours Adjustment Act of 2000, an employee must work in an
organization with more than 10 workers, and must have been employed for at
least a year by the time his/her work hours would be adjusted.
^23The Right to Request Flexible Working and Duty to Consider law,
sometimes referred to as "soft touch," became effective in 2003. Eligible
employees must also have worked for their employer continuously for 26
weeks at the time the application is submitted. Children have to be under
6 or have a disability. Adults must be a spouse, partner, civil partner,
or relative, or live at the same residence as the employee submitting a
request.
Childcare Policies Assist Working Parents
All of our study countries have made a public investment in child care, a
means of allowing women to access paid employment and balance work and
family, according to the European Commission. (See table 3). In Canada,
for example, the government provides direct financial support of $100 a
month to eligible parents for each child under 6. In New Zealand, support
is available through a childcare tax credit of $310 per year to parents
who have more than $940 in childcare costs. Researchers have reported
that, like leave benefits, early childhood education and care services in
European countries are financed largely by the government.^24 According to
these researchers, funding is provided by national, state, or regional and
local authorities, and the national share typically is dominant in
services for preschool-age children. These researchers also reported that
care for very young children, and, to a lesser extent, for preschool
children, is partially funded through parental co-payments that cover an
average of 15 percent to 25 percent of costs.
In some countries the provision of early childhood care and education is
viewed as a social right, in others as a shared responsibility. In Sweden
and Denmark, parents are guaranteed a place in the state childcare system
for children of a certain age, according to the European Commission. More
than 90 percent of Danish children are in publicly supported childcare
facilities, according to a Danish researcher. Other countries, including
France, take a similar view with respect to early childhood education. In
France about 90 percent of children ages 3 to 6 and about 35 percent of
2-year-olds attend public preschools, provided free of charge to parents,
according to research. Other countries view the provision of child care as
a responsibility shared among government, employers, and parents. In the
Netherlands, overall, employers, employees, and the government are each
expected to pay about one-third of childcare costs, according to a report
by the European Commission (see table 3).
^24Janet C. Gornick and Marcia K. Meyers, "Support for Working Families:
What the United States Can Learn from Europe" The American Prospect,
(2001), 12:1.
Table 3: Select Government-Supported Childcare Initiatives
Country
(percentage of
GDP country
spends on Provision of space
childcare in the national
and/or early Direct financial childcare or early
education) benefits Tax incentives education system
Canada (Canada Universal Child Care Child Tax Child Care Spaces
spends about Benefit: Benefit: Initiative:
0.2 percent of
its GDP on pre Direct financial Tax-free monthly Supports the
primary support of $100 a payment to creation of up to
education for month--up to $1,200 a eligible 25,000 new
3 to 6 year year--to eligible families with childcare spaces
olds; for all parents for each child children under in 2007.
child care, under 6. 18.
0-12, the
funding Provincial childcare
amounts to 0.4 subsidy:
percent of
GDP.) Saskatchewan's
childcare subsidy
provides subsidies for
families with children
in provincially
licensed childcare
facilities. Low-income
parents receive
subsidies that cover 85
percent of child care
fees on average. The
subsidies are paid
directly to child care
facilities.
Denmark Subsidy: Space in childcare
(Denmark system:
devotes 2.1 The government pays the
percent of its majority of childcare The public
GDP to fund costs and parents pay childcare system
all about one-fourth. guarantees a place
kindergarten for each child
and beginning at 6
leisure-time months of age. If
services.) childcare centers
have waiting
lists, local
municipalities
find alternative
solutions.
France (France Subsidy: Early education:
devotes at
least 1 Parents pay about 12 Every child age
percent of its percent of their income 3-6 has the right
GDP to toward the cost of to attend
childcare and center-based care for preschool free of
pre primary children under 3. charge. The
education enrollment of
services.) 2-year-olds from
socioeconomically
disadvantaged
backgrounds is
also a priority.
Ireland Child Benefit and Early Tax incentives: Childcare spaces:
(Funding of Childcare Supplement:
public pre Various In 2006, the
primary Parents may receive financial government
education payment for each child incentives, announced measures
services: 0.44 up to age 16, or 19, including tax to create 50,000
percent of GDP under certain relief and places in
[0.39 percent conditions, regardless allowances, have after-school care
public and of employment status or been put in by 2010.
0.05 percent use of childcare. place to
private]) Parents with young encourage the
children up to age 6 private
can receive a sector--e.g.,
supplement to the Child employers, the
Benefit. voluntary
sector, or other
firms and
individuals--to
increase the
available
provision of
childcare.
Netherlands Subsidy:
(The
Netherlands The government
devotes 0.38 reimburses parents for
percent of its at least one-third of
GDP [0.37 childcare costs, based
percent public on income. Low-income
and 0.01 parents may receive
percent reimbursement for up to
private] to 95 percent of costs.
fund pre
primary As of January 2007,
educational employers have a
services.) mandatory contribution
of about one-third of
childcare costs
(one-sixth per parent)
to be collected by
raising the employers'
contribution to
unemployment insurance
premiums^a
New Zealand^b Childcare Tax Early education:
Credit:
All 3-and
A tax rebate of 4-year-olds in
$310 per year is teacher-led early
available to childhood
parents who have education services
paid more than can receive up to
$940 per year 20 hours of
for childcare. education per
week, free of
charge, beginning
July 2007.
Sweden (Sweden Child Benefit: Early education:
devotes 1.9
percent of its Parents of children Children of
GDP to fund under the age of 16 can stay-at-home
preschool receive a child parents can take
services.) allowance. part in this
education, which
Subsidy: is generally
available free of
Parental fees for charge.
childcare--which may be
through regular
preschools or
home-based
care--accounted for
about 17 percent of the
cost in 1998.
United Kingdom Emergency discretionary Tax credits: Early education:
(The UK spends funds:
0.47 percent Tax credits are Early education is
of its GDP to Some single parents may available to provided for 12
funding pre be eligible to receive assist working 1/2 hours per week
primary funds to assist in parents in for 38 weeks a
educational overcoming paying up to 80 year for all 3-
services [0.45 emergencies--including percent of the and 4-year-olds
percent public those related to remainder of free of charge.
and 0.02 childcare--that arise childcare costs.
percent in the first 2 months
private]). of employment.
United States Child Care and Dependent Care Head Start:
(The United Development Fund: Tax Credit:
States spends Provides early
about 0.4 Eligible parents may Tax credits are childhood
percent of its receive vouchers or available up to education and
GDP on funding certificates to 35 percent of development
of public pre purchase child care qualifying services to low
primary services with a expenses, or up income preschool
education legally-operating to $3,000 in children.
services.) provider of choice. childcare
expenses for one
child.
Source: GAO analysis of information from country officials, OECD, and
government and related Websites.
Note: We were unable to identify all child care information for each of
the countries we examined.
aAccording to the Dutch Ministry of Social Affairs and Employment, the
contributions would be offset for employers by reducing taxes on business
profits.
bComparable information on GDP in New Zealand was unavailable.
Aside from public support for childcare, some employers in the countries
we reviewed offered additional resources for their employees' childcare
needs. For example, although not mandated by law until January 2007, many
employers in the Netherlands had been contributing toward their employees'
cost for childcare. In the Netherlands, about two-thirds of working
parents received the full child care contribution from their employers,
according to a recent survey.^25 In addition, a Canadian union negotiated
employer subsidies to reimburse some childcare expenses for its members,
according to union representatives.
Training Programs Can Be Targeted at the Unemployed or Low-Skilled Workers
Our study countries provide services intended to help the unemployed
develop the skills necessary to obtain work. These include providing
training directly and providing private entities and employers with
resources to provide training or apprenticeships. To address the skill
deficit of those who are unemployed, the UK, for example, has recently
adopted recommendations to increase adult skills training, and create an
integrated employment and skills service, among other things.^26 In
Denmark, the unemployed are required to accept offers, such as education
and training, after 9 months of unemployment to help them find work or
they will lose benefits, according to employee representatives from the
largest Danish trade union confederation that represents the public and
the private sectors.^27 Particular groups of the unemployed that may face
difficulty in finding employment, such as women and the low-skilled, may
be offered training earlier. Employers in Denmark may receive wage
subsidies for providing job-related experience and training to the
unemployed, or for providing apprenticeships in fields with a shortage of
available labor. In the Netherlands, the government provides individual
support--including training, apprenticeships, or job coaching--for the
unemployed to help them secure a job, according to the Dutch Ministry of
Social Affairs and Employment. In the United States, training services
generally are available through the WIA programs, which are provided by
government.
^25The survey was commissioned by the Dutch Ministry of Social Affairs and
Employment.
Local governments and private entities also seek to help the unemployed
obtain and upgrade skills. For example, a local government council in the
UK provides unemployed women training in occupations in which they are
underrepresented, such as construction and public transport. While the
women are not paid wages during the typical 8-12 weeks of training, they
may receive unemployment insurance benefits as well as additional support
for childcare and transportation. Additionally, a privately run
association in the Netherlands provides entrepreneurial training to women
who have been on public assistance for at least 10 years to start their
own businesses, according to an organization official. The association
pays the local college to provide the business-related classes and
coaches, who help participants develop business plans. Both of these
initiatives were funded jointly by the local governments and the European
Social Fund.
^26A comprehensive review commissioned by the UK government showed that
less than half of those with no qualifications are employed, compared to
90 percent of those with graduate-level qualifications. Such findings
showed that skills across the UK lag behind those of its competitors,
particularly with regard to basic and vocational skills. For example, more
than one in three adults do not hold the equivalent of a basic school
qualification, nearly one in two has difficulty with numbers, and one in
seven is functionally illiterate. See Leitch Review of Skills: Prosperity
for All in the Global Economy (HM Treasury, London: December 2006).
^27In addition to mandatory offers of education and training, for example,
the Danish model known as `flexicurity' includes a high degree of labor
market flexibility and generous unemployment benefits.
In addition to providing training to the unemployed, our study countries
also have training initiatives focused on those already in the workforce.
For example, Canada introduced an initiative to ensure that Canadians have
the right skills for changing work and life demands.^28 The program's goal
is to enhance nine essential skills--reading text, document use, working
with numbers, writing, oral communication, working with others, continuous
learning, thinking skills, and computer use--that provide the foundation
for learning all other skills and enable people to evolve with their jobs
and adapt to workplace changes, according to the government. The
broad-based initiative provides resources to help organizations
incorporate workplace literacy and the essential skills into existing
human resources practices. Denmark has had a public system in place since
the mid-1960s that allows low-skilled workers to receive free education,
wage subsidies, and funding for transportation costs. About one-half of
unskilled workers took part in training courses that were either publicly
financed or provided privately by employers in the past year, according to
a Danish researcher. The UK has also developed an initiative that offers
employers training assistance to meets their needs. The UK's Train to Gain
program, based on an earlier pilot program, provides employers free
training for employees to achieve work-related, competence-based
qualifications that reflect the skills needed to do a job effectively.
Qualifications can be earned in a variety of occupational areas, such as
providing health and social services. To qualify for Train to Gain,
employers need to agree to at least a minimum level of paid time that
employees will be allowed to use for training. During the pilot program,
employers were given a wage subsidy to compensate for giving employees
paid time off; evaluations showed the effect of these subsidies to be
mixed. Currently, only employers with fewer than 50 full-time employees
are eligible for limited subsidies under Train to Gain. Train to Gain also
provides skills advice to employers and helps match business needs with
training providers. The UK Leitch Review recommended that the government
provide the bulk of funding for basic skills training and that all adult
vocational skills funding be routed through programs such as Train to
Gain.^29
As is the case with other benefits, many training programs aimed at
increasing employees' skills are initiated privately by employers and
employees. For example, an employer in Saskatchewan reported that he
supports employees' advancement by paying for necessary educational
courses, such as those that prepare employees for required licenses. A
large government employer in the UK offers flexible training to make it
more easily accessible to women. For example, training is made available
online, from work or home, as well as through DVDs that can be viewed at
one's convenience. In the Netherlands, according to an employer
representative, most training is developed through agreements in which
employers agree to pay. In Denmark, a director in the Ministry of
Education reported that some companies give employees the right to 2 weeks
per year of continuing education in relevant and publicly funded
education.
^28The Essential Skills and Workplace Literacy Initiative was introduced
in 2003.
^29See Leitch Review of Skills: Prosperity for All in the Global Economy
(HM Treasury, London: December 2006).
Although Certain Workplace Policies Are Associated with Increased Participation
in the Labor Force, in General, Effects Are Not Definitive
Research has found that workplace policies such as childcare and family
leave encourage women to enter and return to the workforce, while
evaluations of training policies show mixed results. Readily available
childcare appears to enable more women to participate in the labor market,
especially when it is subsidized and meets quality standards such as
having a high staff-to-child ratio and high proportion of certified staff.
Women are also more likely to enter and remain in the workforce if they
have paid family leave, although the length of leave affects their
employment. An extensive review of available research by the European
Commission shows mixed results in whether training helps the unemployed
get jobs. Some training initiatives have shown promise but have not been
formally evaluated. In general, researchers and officials reported that it
is difficult to determine the effects of a policy for a variety of
reasons.
Childcare and Paid Family Leave Are Associated with an Increase in Labor Force
Participation
Readily available childcare, especially when it is subsidized and
regulated with quality standards, such as a high staff-to-child ratio and
a high proportion of certified staff, appears to increase women's
participation in the labor force by helping them balance work and family
responsibilities, according to research from several cross-national
studies. While studies show that childcare is associated with an increase
in female labor force participation, a report by the European Commission
found that, if parents feel that there are problems with the quality of
childcare--as is the case with childcare in the UK due, in part, to staff
recruitment and retention issues--they will be less likely to use it.^30
Additionally, the European Commission reports that women prolong their
return to work when childcare is not subsidized and its costs are high.
Low-wage workers, especially single parents, who are predominantly women,
are particularly sensitive to the price of childcare, according to a
European Commission report. Research from the United States also shows
that highly priced childcare can deter mothers from working, according to
a review of the literature. The association between childcare and women's
labor force participation is found in several studies that control for a
variety of factors, including individual countries' cultural norms and
experiences. However, the relationship between early childhood
education--which acts as childcare for some parents--and women's labor
force participation is uncertain. Because many unemployed mothers also
place their children in subsidized preschool, any impact that the
preschool has on encouraging mothers to work may appear to be diminished,
according to a cross-national study.^31
30European Commission, `Making Work Pay' Debates from a Gender Perspective
(Belgium: European Communities, 2006), 110.
Research shows that paid family leave encourages women's employment by
helping them to enter the labor market and to return to work more quickly
after having a child. Women who have a set leave period, and a guarantee
of a job upon return, tend to return to work more quickly than women who
have to quit their job and re-enter the labor market. One extensive review
of the literature on family leave found that leave increases the chance
that women will return to work by the end of the year following the
birth.^32 Another study examining paid maternity leave of varying lengths
of time in several Western European countries, including Denmark, France,
Ireland, and Sweden, concluded that maternity leave may increase women's
employment rate by about 3-4 percent.^33 Furthermore, paid leave set aside
for fathers has allowed Swedish mothers to return to work more quickly
since fathers are encouraged to share in the caring duties, according to
one study.^34
^31Florence Jaumotte, "Female Labour Force Participation: Past Trends and
Main Determinants in OECD Countries," OECD Economics Department Working
Papers No. 376 (2003): 19.
^32Janet C. Gornick and Marcia K. Meyers, Families That Work: Policies for
Reconciling Parenthood and Employment (New York: Russell Sage Foundation,
2003), 245.
^33This may overstate the increase in employment. In some cases, people on
family leave are considered "employed but absent from work" and this may
account for a quarter to one-half of the increase associated with longer
lengths of leave (9 months or more). Christopher J. Ruhm, "The Economic
Consequences of Parental Leave Mandates: Lessons from Europe," The
Quarterly Journal of Economics. Vol. 113, No.1 (1998): 311-312.
Research findings, however, are not conclusive as to the ideal length of
family leave to encourage women to return to work. For example, if leave
is too short, women may quit their job in order to care for their child,
according to a European Commission report. Another study, however, found
that if leave is too lengthy, it may actually discourage women from
returning to work after having a child. One researcher stated that French
mothers with at least two children returned to the workforce less
frequently when they became eligible for 3 years of family leave. On the
contrary, some researchers found that Sweden's lengthy leave allowed more
women to enter and remain in the labor force in the long run. One review
of the literature concluded that leave of up to about 1 year is positively
associated with women's employment, while another found that after 20
weeks, the effect of leave on employment begins to deteriorate.
The Effects of Most Workplace Policies and Practices, Including Training, Are
Not Definitive
Evaluations of training for the unemployed, where they exist, have shown
mixed results in helping individual workers. Research on training program
participants from Sweden and Denmark found that training programs do not
appear to positively affect all participants' employment. While the Danish
government's labor market policies seem to have successfully lowered the
overall unemployment rate to around 4 percent by the end of 2006,
according to Danish officials, the effect of specific training programs on
participants' employment is difficult to discern.^35 On the other hand, a
number of evaluations of French training programs suggest that these
programs help participants secure jobs. New Zealand's evaluation of two of
its training programs, which provide both remedial and vocational skills
to participants, found that the training had a small effect on the
participants' employability.^36 Nearly all evaluations of Canadian and
U.S. training programs show that the programs increased the ability of the
unemployed to get jobs, according to a literature review by the Canadian
government. According to a European Commission report, one researcher's
review of 70 training program evaluations, including those in Denmark,
France, the Netherlands, Sweden, and the UK, suggested that training
programs have a modest likelihood of making a positive impact on
post-program employment rates. However, the European Commission reports
that many studies on individual outcomes are based upon short-term data,
while the effects on participants' employment may not be evident for 1 to
2 years or more. This is partly because participants may not actively
search for a job while they are in training. In the long run, however,
training programs may lead participants to find more suitable jobs and
spend less time out of the workforce.
^34Elina Pylkkanen and Nina Smith, "Career Interruptions due to Parental
Leave: A Comparative Study of Denmark and Sweden," OECD Social, Employment
and Migration Working Papers No. 1 (2003): 30.
^35This is partly due to the fact that most studies evaluate all active
labor market programs together, rather than single program types. These
programs include not only skills and qualifications upgrades but also wage
subsidized employment and practical work experiences in enterprises. In
addition, all recipients of unemployment benefits in Denmark are required
to participate in active labor market programs if they do not find
employment within a certain time-frame, so there is no comparison group
for formal evaluations.
Some national and local training initiatives that we reviewed--both those
for the employed and those for the unemployed--have shown promise,
although some have not been subject to an evaluation. For example, an
evaluation of the precursor to the UK's national Train to Gain program
found that 8 out of 10 participants believed they had learned new skills,
and employers and participants both felt that the training enabled
participants to perform better at work. However, the evaluation estimated
that only 10-15 percent of the training was new training, while the
remaining 85-90 percent of the training would have occurred without the
program. Although a planned evaluation has not yet been conducted, an
individual UK employer reported that it trained 43 women for jobs in which
they are underrepresented. Fourteen of these women found employment and 29
are in further training. Those in further training report that they are
more confident that they can find a job, and some are actively seeking
employment, according to the employer. Further, 10 out of 70 women began
their own business after completing a program in the Netherlands that
provides women on social assistance with training to become entrepreneurs,
according to the program provider.
Even where evaluations do exist, it is difficult to determine the effects
of any policy for a variety of reasons. Research indicates that policies
that appear to increase female labor force participation also interact
with cultural factors, such as a country's ideology concerning social
rights and gender equality, according to a researcher from Ireland. In
some cases, too, new policies interact with the effects of existing ones.
For example, a researcher reported that the French government provides
payments to mothers who may choose to stay home with their children, while
also subsidizing childcare that encourages mothers to work. Additionally,
changes in the labor market may actually bring about the enactment of
policies, rather than the other way around. For example, it is difficult
to be sure whether the availability of childcare causes women to enter the
labor force or if it is an effect of having more women in the workforce,
according to one researcher's review of the relevant literature. Several
of the studies we reviewed attempt to correct for these factors, but a
researcher stated that it is difficult to determine cause and effect with
certainty even with the best of studies.
^36Roopali Johri et al, Evidence to Date on the Working and Effectiveness
of ALMPs in New Zealand (New Zealand Department of Labor and Ministry of
Social Development, 2004), 15.
Further, few evaluations of certain policies and practices have been
conducted. According to both a European Commission report and a study by
the Canadian government, the majority of training evaluations come from
Canada and the United States, where such studies are often mandated.^37
Evaluations are conducted less frequently in Europe although, according to
the European Commission, this is starting to change. Moreover, some
policies were recently developed, and governments frequently make changes
to existing policies, a fact that may make it difficult to evaluate them.
For example, a report by the Canadian government states that flexible work
arrangements are relatively new and represent an area in which research is
needed. In other cases, a policy simply codified into law a widely used
practice. For example, a government official in the Netherlands reported
that it was very common for Dutch women to choose to work part-time even
before legislation passed that promoted employees' right to reduce their
working hours.
^37European Commission, Employment in Europe 2006 (Belgium: European
Communities, 2006), 134; and Gender Equality in the Labor Market: Lessons
Learned (Human Resources Social Development Canada, 2002), 22.
While Several Factors Affect Uptake, Employees' Use of Workplace Benefits Can
Have Implications for Employers and Employees
The experiences of the countries we reviewed have shown that
characteristics of policies, such as the level of payment during leave,
can affect whether an employee uses various workplace benefits. For
example, the province of Saskatchewan in Canada provides 12 days of unpaid
leave per year, for time away from work to deal with emergencies or
sickness.^38 However, according to a Saskatchewan government official,
low-wage workers cannot always afford to take the unpaid leave. Similarly,
according to a University of Bristol professor, low-income mothers in the
UK disproportionately return to the workforce at the end of paid maternity
leave, whereas more affluent mothers tend to return at the end of unpaid
leave. The level of payment can also affect the likelihood that men are
willing to take leave, thereby allowing women to shorten their leave and
return to work if they choose to do so. A review of the literature from
European countries demonstrates that men are much more likely to take
leave when they receive a high percentage of their wages.^39 When parental
leave can be shared between parents and the level of payment is low, women
tend to take the leave, in part because their income level is often lower
than their husband's. The review also found that men are more likely to
take parental leave when it reserves a period of time exclusively for
their use, and does not allow that time to be transferred to the mother. A
report from the European Commission also found that the ability to use
leave flexibly, such as for a few hours each day or over several distinct
periods rather than all at once, can also increase parents' take-up rates
for leave as parents are able to care for their children and stay in the
labor force at the same time.
Employer views and employee perceptions on workplace benefits, such as
leave and training, can also directly affect an employee's use of them.
According to researchers in Canada, flexibility in the workplace is
determined more by individual managers and workplace culture than by
whether specific policies exist. Their research found, for example, that
the ability to arrange a schedule in advance and interrupt it if needed is
very important to employees, but that this ability is not necessarily
associated with express policy. What matters most, rather, is who an
employee reports to and how willing a supervisor is to be flexible.
Research from the European Commission also indicates that an
organization's culture can determine whether or not parents take leave and
that both women and men may face unsupportive workplaces. For example,
according to the report, men may face negative attitudes from employers
when wishing to take family leave. In addition, a review of a UK training
program that offered free or subsidized training and wage subsidies to
employers for the time employees spent in training found that small
employers were generally less positive than larger ones about the value of
training for employees.^40 According to a UK employee representative,
despite the program's benefits, many small employers did not participate,
as they either did not see a need for training or feared losing staff if
they acquired new skills. University researchers in Denmark expressed
similar concerns, stating that companies face risks in providing training
to increase the skills of their employees as employees with additional
skills may leave. Further, according to a university researcher in Canada,
employer-supported training tends to be provided to the higher-skilled and
educated, and the low-skilled may have limited opportunity to improve. A
cross-national study from the OECD, which included the countries we
reviewed, found that many employers tend to view training for the
low-skilled as a cost, rather than an investment, and devote substantially
more resources to their high-skilled workers, on average. In addition, an
employee's perceptions on training can also affect his or her uptake of
opportunities. For example, employee representatives from Denmark's
largest trade union confederation said that low-skilled employees are more
likely to have had negative experiences with education and that these
experiences can affect whether they take advantage of workplace training
opportunities to increase their skills.
^38The provinces of British Columbia, New Brunswick, Newfoundland and
Labrador, Nova Scotia, Ontario, Prince Edward Island, and Quebec also
provide unpaid Family Responsibility Leave of varying lengths.
^39Janet C. Gornick and Marcia K. Meyers, "Supporting a Dual Earner/Dual
Carer Society: Lessons from Abroad," in A Democracy That Works: The Public
Dimensions of the Work and Family Debate, edited by Jody Heymann and
Christopher Beem, New York: the New Press (forthcoming).
Employees' use of workplace benefits can create management challenges for
their employers. For example, an employer in Saskatchewan reported that
covering for the work of staff on family leave can be complicated. He said
that although he was able to hire temporary help to cover an employee on
maternity leave, he faced an unexpected staff shortage when the employee
decided toward the end of her leave not to return to work and the
temporary employee had found another job. In addition, a university in the
UK reported difficulties in managing employees' leave, as many of the
organization's research projects are externally funded and do not provide
extra funds to cover for employees on maternity leave. She added that
finding a suitable replacement for employees that are specialized also
poses problems. An official affiliated with the largest employer
association in the Netherlands stated that it can be hard to organize work
processes around employees' work interruptions, especially during
short-term and unplanned leaves. Similarly, university researchers in
Denmark reported that coordinating arrangements during an employee's
absence, including during training, may be problematic for small
employers.
^40Department for Education and Skills, "Employer Training Pilots: Final
Evaluation Report," (2006).
The use of family leave or part-time work schedules may have negative
implications for an employee's career. Employers have indicated that they
would prefer to hire an older woman with children rather than a younger
woman who has yet to have children, according to university researchers in
Denmark.^41 In addition, long parental leaves may lead to an actual or
perceived deterioration in women's labor market skills, according to an EU
report, and can have negative effects on future earnings. According to
employee representatives in Canada, in the high-tech sector, where there
are rapid changes in technology, the use of parental leave can be
particularly damaging. According to a university employer in the UK, women
who choose part-time work may find that they continue to work full-time
schedules due to the demanding nature of their chosen field, even though
they receive part-time wages. In addition, some part-time jobs have no
career advancement opportunities and limited access to other benefits,
such as payment during leave and training. Since employers tend to target
their training to higher-skilled and full-time workers, employees who opt
to work part-time may have fewer opportunities for on-the-job training
that could help them advance, according to university researchers in the
Netherlands.
^41According to government officials in Denmark, to counter gender
discrimination, all private sector employers are required to contribute to
a fund that pays for periods of leave on the basis of their number of
employees, regardless of gender.
Concluding Observations
Workplace policies and practices of the countries we studied generally
reflect cooperation among government, employer, and employee
organizations. Many developed countries have implemented policies and
practices that help workers enter and remain in the workforce at different
phases of their working lives. These policies and practices, which have
included family leave and childcare, for example, have been adopted
through legislation, negotiated by employee groups, and, at times,
independently initiated by private industry groups or individual
employers.
U.S. government and businesses, recognizing a growing demand for workplace
training and flexibility, also offer benefits and are seeking ways to
address these issues to recruit and retain workers. Potentially increasing
women's labor force participation by further facilitating a balance of
work and family, and improving the skills of low-wage workers throughout
their career, may be important in helping the United States maintain the
size and productivity of its labor force in the future, given impending
retirements. While other countries have a broader range of workplace
benefits and flexibility and training initiatives, little is known about
the effects of these strategies. Whether the labor force participation
gains and any other positive outcomes from adopting other countries'
policies would be realized in the United States is unknown. Moreover, any
benefits that might come from any initiatives must be weighed against
their associated costs. Nonetheless, investigating particular features of
such policies and practices in some of the developed countries may provide
useful information as all countries address similar issues.
Agency Comments
We provided a draft of this report to the Departments of Labor and State
for review and comment. The Department of Labor provided technical
comments on the draft report, which we have incorporated where
appropriate. The Department of State did not have comments on this report.
We are sending copies of this report to the Secretary of Labor, the
Secretary of State, appropriate congressional committees, and other
interested parties. In addition, the report will be available at no charge
on GAO's Web site at http://www.gao.gov .
A list of related GAO products is included at the end of the report. If
you or your staff have any questions about this report, please contact me
at (202) 512-7215. You may also reach me by e-mail at nilsens@gao.gov
. Contact points for our Offices of Congressional Relations and Public
Affairs may be found on the last page of this report. Key contributors to
this report are listed in appendix IV.
Sigurd R. Nilsen
Director, Education, Workforce, And Income Security
Issues
Appendix I: Objectives, Scope and Methodology
To describe the policies and practices implemented in other developed
countries that may help women and low-wage/low-skilled workers enter and
remain in the labor force, and to identify the factors that affected
employees' use of workplace benefits and the resulting workplace
implications, we conducted site visits or in-depth interviews with various
officials in four developed countries--Canada, the United Kingdom (UK),
the Netherlands, and Denmark. We selected Canada because of its limited
government role in the economy, and the UK to compare policies with a
European country that has a preference for a limited government
intervention in labor markets, and because it recently implemented a law
that encourages flexible work schedules. We selected the Netherlands as it
has a higher proportion of part-time workers than any other country in
Europe and has an extensive workforce development system. We selected
Denmark because it has had work-family policies in place for more than 30
years, has a goal of gender-equitable labor force participation, and
provides extensive training programs. We interviewed government officials,
researchers, private employers, and trade associations or unions in each
of the countries about their experiences with such policies and practices.
We also visited Belgium to meet with officials from several European Union
(EU) institutions, such as the European Commission and the European
Foundation for the Improvement of Living and Working
Conditions--organizations that provided a broader Europe-wide perspective
on the selected policies and practices and current political environment
across countries.
To examine the change in the targeted groups' employment following the
implementation of the policies and practices, as well as to identify the
factors that affected employees' use of workplace benefits and the
resulting workplace implications, we conducted an extensive literature
review of workforce flexibility and training strategies in a range of
developed countries. Our literature reviews focused on cross-national
studies that examined our selected countries. To identify relevant studies
for our research, we conducted database searches, spoke with U.S. and
international academics, and spoke with knowledgeable U.S. agency
officials. We selected studies that had been conducted within the past 10
years, studies that included at least three of our selected countries, and
studies that we determined were methodologically sound. Our review of
these studies was limited to the extent that they were available in
English. These reviews provided information on the policies and practices
in use, their target population and purpose, related laws and regulations,
and any changes in employment following the implementation of the policies
and practices. Additionally, we reviewed research reports from the
Organisation for Economic Co-operation and Development (OECD) and the
European Commission (EC).
We reviewed four other countries based on policies and practices they had
implemented for our target groups. Information about these countries'
policies/practices came from extensive literature reviews and discussions
with U.S. and foreign-based researchers. The selected countries were
Ireland, which has experienced a large decline in unemployment and
low-paid work in the last decade and has a flexible labor market; France,
which supports women's employment in part through universal childcare;
Sweden, which has had work-family policies in place for more than 30
years; and New Zealand, which implemented legislation mandating that all
employers provide a minimum number of paid sick days to workers as well as
legislation mandating paid parental leave for certain employees.
To provide context, we identified relevant national policies in the United
States. However, we did not conduct a comprehensive review of similar
workplace flexibility and training strategies in the United States, nor
did we seek to determine whether other countries' strategies could be
implemented in the United States.
Additionally, our review of related laws and regulations of other
countries relied on secondary sources of analysis rather than independent
analysis of foreign laws. Our review of the laws and regulations was
limited by the extent that specific information from secondary sources was
accessible and written in English.
Appendix II: Selected Labor Market Statistics
Table 4: Educational Attainment Ages 25-64, 2004
Average number of years in Percentage of population with
formal education a postsecondary education^a
Country Total Men Women Total
Canada 13.2 13.2 13.3 45
The U.S. 13.3 13.2 13.4 39
Sweden 12.6 12.4 12.8 35
Denmark 13.4 13.5 13.3 32
The Netherlands 11.2 11.4 11.1 29
Ireland 13.0 12.9 13.1 28
The UK 12.6 12.7 12.4 26
New Zealand 12.6 12.6 12.6 25
France 11.6 11.7 11.4 24
OECD Average 11.9 11.9 11.8 25
Source: Education at a Glance: OECD Indicators 2006 (OECD, 2006).
aPostsecondary education, often referred to internationally as tertiary
education, includes undergraduate and postgraduate education, as well as
vocational education and training.
Note: Educational attainment in these countries will vary by age group,
i.e., whether individuals are 25-34, 35-44, 45-54, or 55-64.
Table 5: Percentage of Full-time Workers Earning Less than Two-Thirds of
the Median Wage of Full-time Workers
Year
Country Mid-1990s 2003-2004^a
The UK 19.5 23.4
The U.S. 25.1 23.3
Canada 22.3 22.3
The Netherlands 11 16.6
New Zealand 14.5 14.7
France 13.9 14.0
Ireland 23.5 13.7
Denmark 7.3 9.3
Sweden 5.7 6.4
Source: OECD data, [28]http://dx.doi.org/10.1787/184587347336 .
aData for France are for 2001.
Table 6: Public Expenditures on Training Programs
Public expenditures on training as a percentage of GDP,
Country 2003-2004
Denmark 0.54
The Netherlands 0.36
Sweden 0.35
France 0.31
Ireland 0.18
New Zealand 0.18
The UK 0.13
Canada 0.12
The U.S. 0.05
Source: OECD Employment Outlook 2006: Boosting Jobs and Income (OECD,
2006).
Note: The expenditures on training include those for institutional
training, workplace training, integrated training, and special support for
apprenticeship programs.
Table 7: Gross National Income, Per Capita, 2005
Gross national income per capita, purchasing power parity
Country (international dollars)
The U.S. $42,000
Denmark $34,030
The UK $33,960
The Netherlands $32,970
Canada $32,770
Ireland $32,580
Sweden $32,440
France $30,540
New Zealand $25,450
Source: World Development Indicators Database, World Bank, Purchasing
Power Parity (international dollars), 2007.
Note: Purchasing power parity (PPP) conversion factors take into account
differences in the relative prices of goods and services and therefore
provide a better overall measure of the real value of output produced by
an economy compared to other economies. Because PPPs provide a better
measure of the standard of living of residents of an economy than other
measures, such as the Atlas method, they are the basis for the World
Bank's calculations of poverty rates.
Appendix III: Maternity, Paternity, and Parental Leave Provisions
Table 8: Maternity Leave
Length of
Country leave Eligibility Payment Conditions
Canada Length of Must generally Payment of 55 2-week waiting
leave for have worked for percent of period prior to
private the same average insured receiving payment
employers employer for a earnings, up to
governed by continuous yearly maximum
the period that earnings of
provinces, ranges from 13 $40,000, is
which weeks to 12 available for a
generally months. However, maximum of 15
allow 17 three provinces weeks for women
weeks of do not have this who have worked
unpaid requirement. for at least
leave. 600 insured
hours in the
last year.
Payment can
begin up to 8
weeks prior to
the expected
birth.
Denmark 18 weeks Must have been Based on the Leave includes 4
employed for at hourly wage of weeks before the
least 120 hours the employee, expected date of
in the 13 weeks up to a confinement and
prior to the maximum. In 14 weeks
leave. Women who 2003, on following
are average, the confinement
self-employed, compensation
have completed rate was 60-70
vocational percent of
training for a former
period of at earnings.
least 18 months,
are doing paid
work placement
as part of a
vocational
training course,
or are
unemployed are
also entitled to
cash benefits.
France 16 weeks of Generally paid
maternity at full
leave for a earnings for
woman's women with a
first minimum level
child, and of social
26 weeks insurance
for contributions
subsequent or hours worked
children
Ireland 26 weeks of Generally paid
maternity at 80 percent
leave, and of earnings,
16 weeks of subject to a
unpaid minimum and
maternity maximum
leave payment, for
women with a
minimum level
of social
insurance
contributions
The 16 weeks 100 percent of Leave generally
Netherlands the daily wage, begins 6 weeks
up to a prior to the
maximum, which expected date of
is paid by the birth
general
unemployment
fund
New Zealand 14 weeks Unpaid leave for 100 percent of Paid leave by
14 continuous weekly pay, up women must be
weeks is to a maximum, taken at the same
available to is available to time as unpaid
women who do not women who have leave for which
meet minimum worked at least they are
work eligibility 10 hours per eligible. If a
requirements. week in the 6 woman's spouse of
or 12 months partner meets the
preceding eligibility
baby's expected criteria, the
date of birth. mother can
transfer all or a
part of this
leave to them
Sweden 12 weeks 80 percent of Leave is for 6
earnings weeks before and
6 weeks following
the birth of a
child
UK 52 weeks 90 percent or Payment period
less of weekly for statutory
average maternity
earnings is pay/allowance is
available for 39 weeks
39 weeks to
women whose
earnings
qualify for the
national
insurance
program and who
have worked for
the same
employer
continuously
for 26 weeks
prior to the
15th week
before the
child is due.
Women who do
not meet these
requirements
may receive
payment of 90
percent or less
of earnings for
39 weeks
through a
maternity
allowance
U.S. 12 weeks Must have worked Unpaid Allows eligible
for employer for employees to take
at least 1 year, up to 12 weeks of
and for over job-protected
1,250 hours leave in a
during the last 12-month period
year. for qualifying
reasons,
including the
birth or
placement of a
child for
adoption or
foster care, the
employee's own
serious health
condition, or to
care for a
qualifying family
member with a
serious health
condition. Leave
for the birth or
placement of a
child must
conclude within
12 months of the
birth or
placement.
Source: GAO analysis of OECD, European Commission, and government and
related Web sites
Note: We were unable to identify all recent or available information for
each of the countries we examined.
Table 9: Paternity Leave
Length of
Country leave Eligibility Payment Conditions
Canada See table 10
on parental
leave as
paternity
leave was
largely
replaced by
this leave in
the 1990s
Denmark 2 weeks Employed or In 2003, on Must be taken
self-employed average, the continuously
compensation within 14 weeks
rate was 60-70 following the
percent of birth
former
earnings
France 11 days, or Generally paid Must be taken
18 days, in at full continuously
the case of a earnings for
multiple fathers with a
birth minimum level
of social
insurance
contributions
or hours
worked
Ireland No legal
entitlement
to paternity
leave
The 2 days Employer pays
Netherlands 100 percent of
wages
New Zealand 1 or 2 weeks One week Unpaid
unpaid leave
is available
to partners
with 6 months
of eligible
service and
two weeks
unpaid is
available to
those with 12
months of
eligible
service
Sweden 10 working Paid at 80
days percent of
earnings
UK 1 or 2 weeks Must have 90 percent or Leave must be
worked for the less of completed within
same employer average weekly 56 days after the
continuously earnings for child's birth
for 26 weeks those who
prior to the qualify for
15th week the national
before the insurance
child is due program. Those
who do not
qualify based
on earnings
may be
eligible for
other income
support.
U.S. As with Must have Unpaid Allows eligible
maternity worked for employees to take
leave, the employer for up to 12 weeks of
Family and at least one job-protected
Medical Leave year, and for leave in a
Act (FMLA) over 1,250 12-month period
provides 12 hours during for qualifying
weeks the last year. reasons, including
the birth or
placement of a
child for adoption
or foster care,
the employee's own
serious health
condition, or to
care for a
qualifying family
member with a
serious health
condition. Leave
for the birth or
placement of a
child must
conclude within 12
months of the
birth or
placement.
Source: GAO analysis of OECD, European Commission, and government and
related Web sites
Note: We were unable to identify all recent or available information for
each of the countries we examined.
Table 10: Parental Leave
Length of
Country leave Eligibility Payment Conditions
Canada Duration of Must Payment of 55 2-week waiting
leave ranges generally percent of period prior to
from 35 to 52 have worked average receiving payment
weeks, and is for the same insured
determined by employer for earnings, up Benefits can be
the province. a continuous to yearly claimed by one
period that maximum parent or shared
ranges from earnings of between the two,
13 weeks to $40,000, is but cannot exceed
12 months. available for a combined maximum
However, a maximum of of 35 weeks.
three 35 weeks for
provinces do parents with When combined with
not have this at least 600 maternity
requirement. insured hours benefits, payment
in the last is available for
year. up to 50 weeks.
Denmark 32, 40, or 46 60 percent of After the 14th
weeks a worker's week following the
unemployment birth of a child,
benefit, as parents share this
reported in leave, which can
2003 be split or
postponed, until
the child turns 9.
If parents choose
the 40- or 46-week
leave, their
benefits are
frozen to the
amount paid for
the 32-week leave.
France Family Eligible for Flat-rate Leave can be taken
entitlement to payment with benefit by the mother or
leave until a two children payment within father, or can be
child reaches if parents 6 months of shared following
36 months have worked maternity one another
for at least leave for one
2 of 5 years child, or
preceding immediately
birth; for 2 or more
eligible for children
payment for
three or more
children if
parents have
worked for 2
years at any
time in the
10 preceding
birth
Ireland 14 weeks Generally Unpaid Both parents have
must have a separate
been working entitlement to 14
for employer weeks of leave,
for one year which may be used
until the child
turns 8, and can
be taken
continuously or in
separate blocks.
If the child has a
disability, the 14
weeks of leave can
be used until the
child has reached
age 16.
The Amount of Must have Unpaid Must be used
Netherlands leave is based worked for before a child
on working the same turns 8. With
hours and is employer for agreement from an
calculated on at least one employer, the
a part-time year leave can be split
basis over 13 into a maximum of
weeks three parts.
New Zealand 52 weeks, less Must have Unpaid, less Leave can be taken
any maternity worked for any paid simultaneously or
leave (maximum the same maternity consecutively and
of 14 weeks) employer for leave (maximum can be shared
a minimum of of 14 weeks) between parents
12 months where they are
both eligible.
Sweden 480 days per For 390 days, Of the 480 days,
family 80 percent of 60 days are set
previous aside exclusively
income, up to for each parent,
a maximum, and and cannot be
a fixed daily transferred while
rate for the the remaining days
remaining 90 can be shared.
days. Parents
who were not Paid leave must be
employed taken before a
before the child turns 8 and
birth of a can be taken
child receive continuously or in
a flat daily blocks.
rate for 390
days followed
by a lesser
amount for the
remaining 90.
UK 13 weeks, or Must have Unpaid Leave can be taken
18 weeks for completed a until the child
parents of year of turns 5 and in
children with continuous short or long
disabilities service with blocks, with the
current consent of an
employer employer
U.S. As with Must have Unpaid Allows eligible
maternity worked for employees to take
leave, the employer for up to 12 weeks of
Family and at least 1 job-protected
Medical Leave year, and for leave in a
Act (FMLA) over 1,250 12-month period
provides 12 hours during for qualifying
weeks the last reasons, including
year. the birth or
placement of a
child for adoption
or foster care,
the employee's own
serious health
condition, or to
care for a
qualifying family
member with a
serious health
condition. Leave
for the birth or
placement of a
child must
conclude within 12
months of the
birth or
placement.
Source: GAO analysis of OECD, European Commission, and government and
related Web sites
Note: We were unable to identify all recent or available information for
each of the countries we examined.
Appendix IV: GAO Contact and Staff Acknowledgments
GAO Contact
Sigurd R. Nilsen, Director, 202-512-7215, nilsens@gao.gov
Acknowledgments
Diana Pietrowiak, Assistant Director; Gretta L. Goodwin, Senior Economist;
Avani Locke, Senior Analyst; and Seyda Wentworth, Senior Economist made
significant contributions to all phases of this report. Stephanie Toby,
Analyst, made significant contributions to data collection, data analysis,
and message and report development. Sheila R. McCoy provided legal
assistance; Gregory Wilmoth provided methodological assistance; and
Charles Willson, Communications Analyst, assisted with report development.
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(130591)
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Highlights of [48]GAO-07-817 , a report to congressional requesters
June 2007
WOMEN AND LOW-SKILLED WORKERS
Other Countries' Policies and Practices That May Help These Workers Enter
and Remain in the Labor Force
Increasing retirements and declining fertility rates, among other factors,
could affect the labor force growth in many developed countries. To
maintain the size and productivity of the labor force, many governments
and employers have introduced strategies to keep workers, such as women
and low-skilled workers, in the workforce throughout their working lives.
Because other countries have also undertaken efforts to address issues
similar to those occurring in the U.S., GAO was asked to (1) describe the
policies and practices implemented in other developed countries that may
help women and low-wage/low-skilled workers enter and remain in the labor
force; (2) examine the targeted groups' employment following the
implementation of the policies and practices; and (3) identify the factors
that affect employees' use of workplace benefits and the resulting
implications. We conducted an extensive review of workplace flexibility
and training strategies in a range of developed countries, and we
conducted site visits to selected countries. Our reviews were limited to
materials that were available in English. While we identified relevant
national policies in the U.S., we did not determine whether other
countries' strategies could be implemented here. Labor provided technical
comments, and State had no comments on this report.
[49]What GAO Recommends
This report contains no recommendations.
Governments and employers have developed a variety of laws, government
policies, and formal and informal practices, including periods of leave,
flexible work schedules, child care, and training. Each of the countries
we reviewed has some form of family leave, such as maternity, paternity,
or parental leave, that attempts to balance the needs of employers and
employees, and, often, attempts to help women and low-wage/low-skilled
workers enter and remain in the workforce. In Denmark, employed women with
a work history of at least 120 hours in the 13 weeks prior to the leave
are allowed 18 weeks of paid maternity leave. In addition to family leave
for parents, countries provide other types of leave, and have established
workplace flexibility arrangements for workers. U.S. federal law allows
for unpaid leave under certain circumstances. All of the countries we
reviewed, including the United States, also subsidize child care for some
working parents through a variety of means, such as direct benefits to
parents for child care or tax credits. For example, in Canada, the
government provides direct financial support of $100 a month per child, to
eligible parents for each child under 6. Last, governments and employers
have a range of training and apprenticeship programs to help unemployed
people find jobs and to help those already in the workforce advance in
their careers.
Although research shows that benefits such as parental leave are
associated with increased employment, research on training programs is
mixed. Leave reduces the amount of time that mothers spend out of the
labor force. Cross-national studies show that child care--particularly
when it is subsidized and regulated with quality standards--is positively
related to women's employment. Available research on training in some of
the countries we reviewed shows mixed results in helping the unemployed
get jobs. While some initiatives have shown promise, some evaluations of
specific practices have not been conducted. Some country officials said it
is difficult to attribute effects to a specific policy because the
policies are either new or because they codified long-standing practices.
While policies do appear to affect workforce participation, many factors
can affect the uptake of workplace benefits, and employees' use of these
benefits can have implications for employers and employees. For example,
employees' use of workplace benefits can create management challenges for
their employers. Additionally, employees are more likely to take family
leave if they feel that their employer is supportive. However, while a
Canadian province provides 12 days of unpaid leave to deal with
emergencies or sickness, low-wage workers cannot always afford to take it.
Similarly, the uptake of available benefits can also have larger
implications for an employee's career. Some part-time jobs have no career
advancement opportunities and limited access to other benefits. Since
employers tend to target their training to higher-skilled and full-time
workers, employees who opt to work part-time may have fewer opportunities
for on-the-job training that could help them advance, according to
researchers in the Netherlands.
References
Visible links
22. http://www.familiesandwork.org/
23. http://www.greatplacetowork.com/
24. http://www.nationalpartnership.com/
25. http://www.gao.gov/cgi-bin/getrpt?GAO-07-167
28. http://dx.doi.org/10.1787/184587347336
30. http://www.gao.gov/cgi-bin/getrpt?GAO-07-437R
31. http://www.gao.gov/cgi-bin/getrpt?GAO-07-438SP
32. http://www.gao.gov/cgi-bin/getrpt?GAO-07-167
33. http://www.gao.gov/cgi-bin/getrpt?GAO-06-285
34. http://www.gao.gov/cgi-bin/getrpt?GAO-06-126
35. http://www.gao.gov/cgi-bin/getrpt?GAO-05-667
36. http://www.gao.gov/cgi-bin/getrpt?GAO-05-650
37. http://www.gao.gov/cgi-bin/getrpt?GAO-04-845SP
38. http://www.gao.gov/cgi-bin/getrpt?GAO-04-35
39. http://www.gao.gov/cgi-bin/getrpt?GAO-03-307
40. http://www.gao.gov/cgi-bin/getrpt?GAO-02-85
41. http://www.gao.gov/
42. http://www.gao.gov/
43. http://www.gao.gov/fraudnet/fraudnet.htm
44. mailto:fraudnet@gao.gov
45. mailto:JarmonG@gao.gov
46. mailto:AndersonP1@gao.gov
47. http://www.gao.gov/cgi-bin/getrpt?GAO-07-817
48. http://www.gao.gov/cgi-bin/getrpt?GAO-07-817
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