National Paid Family and Medical Leave Could Lower Poverty, Racial Disparities

TL/DR –

The US Department of Labor has released new research indicating that a national paid family and medical leave program could reduce poverty and lessen the poverty gap among workers. Currently, only 13 states and the District of Columbia have paid family and medical leave programs. The research, commissioned by the Women’s Bureau from the Urban Institute, suggests that a national policy providing up to 12 weeks of paid leave could make 97% of workers eligible for benefits and reduce poverty by 16% among those receiving paid leave benefits.

National Paid Family and Medical Leave Could Reduce Poverty and Racial Wealth Gap

A new study by the U.S. Department of Labor indicates that a national paid family and medical leave program could significantly reduce poverty rates and narrow the racial poverty gap. The study emphasizes the potential benefits for Black and Hispanic workers, who face among the highest poverty rates.

This groundbreaking research, commissioned by the Department’s Women’s Bureau and conducted by the Urban Institute, analyzes the potential impact of a universal national paid family and medical leave policy on American workers. It includes an extensive literature review, a brief on tax impacts of state paid leave policies, and state-specific reports on proposed paid leave policies in Maryland, Michigan, Pennsylvania, and Washington. 

As of March 2023, only 13 states and the District of Columbia have paid family and medical leave programs. Shockingly, just 27% of civilian workers and 41% of civilian workers had access to paid family leave and short-term disability insurance through their employers respectively. Among the lowest wage earners, merely 6% have access to paid leave.

However, the Urban Institute study suggests that a universal national policy, similar to the FAMILY Act, providing up to 12 weeks of paid leave could make 97% of workers eligible for benefits. Such a policy designed with inclusive features – low earnings requirements, broad worker coverage, and progressive wage replacement – could decrease poverty by 16% among families receiving paid leave benefits.

Women’s Bureau Deputy Director Gayle Goldin said, “The Urban Institute findings make a compelling case for a comprehensive national paid family and medical leave program.” Goldin stressed that such a program would help people maintain financial stability during health and caregiving crises, and would also assist employers in attracting and retaining workers.

“Paid leave boosts women’s workforce participation and increases the gross domestic product. Investing in families is a win-win for everyone,” added Goldin.

To learn more, view the complete reports here.

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