Please use this identifier to cite or link to this item:
https://hdl.handle.net/10620/17216
Longitudinal Study: | HILDA | Title: | The wage-penalty effect: the hidden cost of maternity leave | Authors: | Baker, D | Institution: | The Australia Institute | Publication Date: | 18-Jul-2011 | Publisher: | The Australia Institute | Pages: | 23 | Keywords: | maternity leave policy wage penalty |
Abstract: | In 2011, the introduction of a Paid Parental Leave Scheme saw Australia catch up with other developed countries, including New Zealand where a similar scheme had been in place for a decade. The Australian scheme is means-tested and provides employed parents with the option of 18 weeks’ PPL at the minimum wage. While the new scheme provides 18 weeks’ income at the minimum wage, it does not address the wage penalty that can be experienced when parents, often women return to work following parental leave. Analysis of the Household, Income and Labour Dynamics in Australia (HILDA) survey reveals that, in the first year back at work, a wage penalty of just over four per cent exists for women in Australia, which equates to more than three weeks of PPL payments under the new scheme. The ‘wage-penalty’ effect increases over the next two years. The paper concludes with possible policies to address the financial implications of a wage penalty, and the factors influencing this phenomenon. | URL: | https://australiainstitute.org.au/report/the-wage-penalty-effect-the-hidden-cost-of-maternity-leave/ | ISBN: | ISSN 1836-9014 | Keywords: | Employment; Employment -- Parental leave; Policy; Finance -- Income (Salary and Wages); Policy -- Parenting; Finance | Research collection: | Reports and technical papers |
Appears in Collections: | Reports |
Show full item record
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.