Case StudyEconomics + equity + health. The case of paid parental leave in Australia

Lyndall Strazdins, Phil Baker, Sharon Friel

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Problem stream Policy stream Political stream

Indicators

Focusing events

Framing the problem

Policy community cohesion

Institutions

Policy entrepreneurs

Viable policy alternatives

Framing solutions

Policy advocates

Political transitions

Ideology

Interest group

mobilization

Public opinion

Policy window

The issue

• Consider how health and equity got into the paid parental leave policy agenda--

• 2 phases of parental leave policies (where it failed and where it succeeded)– Legislated unpaid, employer choice

– Legislated minimum wage PPL in 2011 and wind back or making PPL fairer

• By doing this, demonstrate the problem, the policy and the political streams that underpinned this process.

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The scheme started January 2011

• 18 weeks at minimum wage (AUD $590 week ~)

• Can be combined with other paid or unpaid maternity leave

• Taxable

• Work tested

• Casual and self-employed included

• Income tested $150K

• Can be transferred to fathers4

Policy goals

↑ Women’s labour force participation

↑ Gender equality and improve work/life balance

↑ Health and wellbeing of babies and mothers

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How did it happen?

• Long story (spanning decades)

• Multiple attempts

• Still contested

• Interviews with key stakeholders (in progress, 9 so far)…. politicians, their advisors, senior policy makers, key academics, human rights advocates, feminists

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Two phases: Phase 1 (all unpaid)

• 1973 Maternity Leave Act

– 12 weeks paid leave female Commonwealth employees (0.4% female workforce, ABS, 1975)

• 1979 52 weeks unpaid leave (all mothers if worked

same employer 12 months part or full time)

• 2004 Work and family test case extended to 104

weeks (2 years) plus

• 2004 Maternity payment (any mother)

– 2007 Baby bonus ($5000 AUD)

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Kevin 07

• Politics!

• Paid parental leave become part of Labour’s election platform, led by key advocates in the party (esp Macklin)

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The Productivity Commission 2009

• Labour Government commissioned an inquiry –Productivity Commission 2009

• Identify economic, social, health and productivity costs and benefits of paid maternal and paternal leave

• Equity: Assess impacts for diverse groups of employed mothers (self employed, farmers, casually employed, small and large business)

• Result: Paid leave framed as a welfare benefit

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Problem stream Policy stream Political stream

Indicators

Focusing events

Framing the problem

Policy community cohesion

Institutions

Policy entrepreneurs

Viable policy alternatives

Framing solutions

Policy advocates

Political transitions

Ideology

Interest group

mobilization

Public opinion

Policy window

Both phases shared the same problems

• Indicators: Converging, growing, major social, demographic and economic pressures on Government budgets.

• Stalling gender equality

• Framing: a contest – is this an equality problem or an economic problem, is solving it the responsibility of business or social welfare/Government?

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Labour force then and now

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2011 20111966

Gender equality problems

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Women as skilled as men, but

• Less likely to be employed

• Earn 18% less or $4.10 less

hour for hour

• Earn $700,000 less over their lifetime

• Lower superannuation

• Greater risk for poverty

Fertility problems

• Past forty years, fertility rate from 2.9 to 1.7, now nearly 1.9

• Linked to work-family conflicts from workforce participation and increased control over childbearing

Ageing and expenditure problems

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Source: Australian Institute of Family Studies

1911

1951

2000

2051

Two phases, same problems, different frame

Unpaid parental leave

• 1973-2007

• Advocating for paid leave but only achieved right for unpaid time off after a birth (and be able to return to the same job)

• Argued as a business case, paid by business

• Fought in the IR arena

Paid parental leave

• 2007 Labour election promise

• 2009 Productivity Commission

• 2011 the PPL scheme

• 2013 gold plated version Liberal promise (reversed)

• Implemented as a welfare benefit, paid for by the tax payer

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2004 Work and family test case

Paid leave in an IR framework

• ACTU and HREOC paid parental leave

• AiG contends paid leave will result in women being priced out of the labour market

• ACCI strongly opposed increasing unpaid parental leave entitlements “too costly, no demonstrated benefits”

• Result = unpaid extended, no paid leave.

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Policy community cohesion and institutions

Unpaid parental leave

• Womens’ groups

• Human rights and equal opportunity commission

• Unions

• NGO human rights champion

• Political champion

• Business

• Business case + equity + human rights

Paid parental leave

• Women’s groups

• Human rights and equal opportunity commission

• Unions

• Political champion (Macklin, Labour)

• Business

• Business case + equity + health

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Political Stream

• In Phase 1 there was no political champion (Howard era)

• In Phase 2 Labour women (Macklin, Plibersek) and labour policy put it forward.

• Still some contest and resistance (Unions, male conservatives all leanings)

• 2007 election a key transition which PPL advocate and policy community took advantage of.

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Finally health!

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Problem stream Policy stream Political stream

Indicators

Focusing events

Framing the problem

Policy community cohesion

Institutions

Policy entrepreneurs

Viable policy alternatives

Framing solutions

Policy advocates

Political transitions

Ideology

Interest group

mobilization

Public opinion

Policy window

Phase 3?

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Acknowledgements

• Phil Baker

• NHMRC Centre for Research Excellence in the Social Determinants of Health Equity

• ARC FT110100686

• Paid Parental Leave Evaluation team

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Terms of referenceb) Assess PPL models for their potential impact on:

(i) the financial and regulatory costs and benefits on small and

medium sized business;

(ii) the employment of women, women’s workforce participation and

earnings and the workforce participation of both parents more generally;

(iii) work/family preferences of both parents in the first two years after

the child’s birth;

(iv) the post-birth health of the mother;

(v) the development of young children, including the particular

development needs of newborns in their first 2 years; and

(vi) relieving the financial pressures on families.

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