This document compares maternity leave policies and benefits in the United States, England, Canada, and Norway. It finds that the US offers the least generous benefits, with no national paid leave program and a maximum of 12 weeks of unpaid and job-protected leave. In contrast, the other countries studied mandate longer paid leaves, provide a higher percentage of wages replacement during leave, and guarantee job security upon returning to work. The document concludes that reforming US policies to mirror these more generous benefits could significantly increase women's workforce participation rates.

1. London Graves | ECON 3513-001 | April 29, 2014
Comparison of Maternity Benefits
COUNTRIES STUDIED: UNITED STATES, ENGLAND, CANADA, AND
NORWAY

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Abstract
The objective of this report is to compare maternity leave benefits that
women receive in other countries from their employers compared to the United
States. It is my belief that the benefits in the US are unfair compared to these
countries, and the United States should reform the rights to make it more
beneficial to mother and child. The first part of this report will introduce the United
States benefits, the second part will look at benefits in England, the third part will
look at the benefits in Canada, and the fourth part will look at the benefits in
Norway. I will also explain what I believe to be the impact on labor force
participation of women in the U.S., and what they should receive based on the
benefits of these other countries.

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I: Introduction
Benefits that women receive in the United States are vastly different from
those women receive in other countries around the world. As we all know there is
a rising percentage of women participating in the workforce. This is an effect of
the rising cost of living, the increase in single mothers, as well as many other
factors (Giezen, 2013). After talking with a good friend of mine that recently had a
baby, I began to question whether the benefits women receive in the United
States are a contributing factor in the participation rate of women in the
workforce. In this report we will look at the benefits women receive in other
countries versus the ones women receive here in the United States. The first part
of this report will introduce the United States’ benefits and look at what
percentage of women are in the workforce, the second part will look at benefits in
England, the third part will look at the benefits in Canada, and the fourth part will
look at the benefits in Norway. The conclusion will explain what the United States
should do to improve benefits women receive and what these benefits may
contribute to the women workforce.
II: United States
According to the U.S. Census Bureau in 2013 the population consisted of
161.0 million females and 151.1 million males. Of the female population, 74.8
million were 16 and over working in the labor force. This number comprised 47.4

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percent of the total civilian labor force in 2013. Women’s estimated median
annual earnings were $37,791 in comparison to the median annual earnings of
men; which were $49,398. Also according to the U.S. Census Bureau, in 2013
the estimated number of mothers in the U.S. was 85.4 million, with 66 million
married. This leaves 19.4 million single mothers in the U.S. Of the 85.4 million
mothers, 5.2 million chose to be stay-at- home mothers nationwide (U.S. Census
Bureau, 2013). This could bedue to the minimal benefits mothers receive.
According to the article, “Maternity Leaves around the World: Worst and
Best Countries for Paid Maternity Leave” by Huffington Post, women in the U.S.
have no national program for percentages of wages paid while on maternity
leave. The states however, can provide cash benefits, but these vary by
individual states (Huffington Post, 2012). Also, in the U.S. the maximum length of
maternity leave is 12 weeks which is typically unpaid (Giezen, 2013). Most new
parents in the U.S. use a combination of short-term disability (STD), sick leave,
vacation, personal days, and unpaid family leave to stay home with their little one
after birth. These families only receive payment as long as they have days
“banked” for paid leave. Once this leave runs out they must either stay home
without pay, or return back to work and place their child in the care of another
(Giezen, 2013). Also in the U.S. the Family and Medical Leave Act (FMLA)
entitles most workers to up to 12 weeks of job protected medical leave for birth or
adoption. However, the FMLA doesn’t cover those who work for smaller

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companies and guarantees only unpaid leaves (Maternity leave: The basics,
2014). This means most employers must keep “a” position open for a returning
mother, not “their” position. This suggests that women are undervalued in the
workforce, and many women may feel discouraged to go back to work because
of this. Also, families that go without income after a child is born may realize they
can scrape by with only one income. This results in the mother not returning to
work (Maternity Care Benefits Among Medical Plan Participants, 2009).
III: England
. In the UK women receive different benefits than women do in the U.S.
According to the Office for National Statistics in 2011, the UK comprised of 32.2
million women. Women who have children in the UK are entitled to 52 weeks of
maternity leave with 55 percent of wages paid at 17 weeks. An additional 35
weeks can be taken by either parent (Giezen, 2013). Also, women are allowed to
claim maternity allowance as soon as they have become pregnant for up to 26
weeks before the child is due, with payments starting 11 weeks before the baby
is due (Maternity Allowance, 2014). Women can also ask their employer to be
flexible with their working hours to accommodate their new demanding schedule
(Maternity and Paternity Benifits and Leave, 2013). These accommodations to
new mothers make them feel more valuable in the work force. The family will see
a slight change in income, but it is not substantial enough to make them consider
living off of one income. Also, by allowing either parent the right to stay home

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with the new child shows the family that all the work of raising the child is not
placed on the mother. She can go back to work half way through her maternity
leave and allow the father to take over, thus making him feel valuable too. She
then is more likely to remain in the workforce because it is accommodating to her
needs as a new mother and an employee.
IV: Canada
So, how does Canada compare to England and the United States? The
Canadian maternity leave benefits are vastly different from those in the United
States and in England. According to the Canadian Government website (2013)
for employment insurance, the Canadian government mandates both a leave and
a benefits component is administered by provincial employment insurance plans.
Depending on the length of employment history and the hours worked, new
mothers can take between 17 and 52 weeks of leave from their jobs. Their
employers are required to accept the employees back into their jobs, or the
equivalent, at the end of the mandated leave at the same rate of pay with the
same employment benefits (Employment Insurance Maternity and Parental
Benefits, 2013).
On top of mandating maternity leave, the government offers paid leave for
one or both parents through Canada’s employment insurance plan. According to
the article Maternity leave basics: Canada vs. the U.S. by Angie Mohr (2012) , a

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pregnant employee or new mother can take a paid maternity leave of up to 15
weeks. Either the mother or father can take 35 weeks of parental leave after the
baby is born or adopted, and the parents can share the leave however they
choose. If eligible for the program, the benefits equal 55 percent of the parent’s
average weekly wages, up to a maximum of $485 per week. For low-income
families, the rate of benefits can increase to up to 80 percent, with the same
maximum of $485 per week. Also, employment insurance benefits are taxable in
the same way as wages (Mohr, 2012). In this situation there is not a risk to the
family to have a child. They are guaranteed their exact jobs and wages upon
returning to work, and because of this more women would be more willing to
return to the workforce under these conditions for some of the same reasons
stated in the England section of this report.
V: Norway
Out of all four of the countries studied for this report, Norway has one of
the best systems for new mothers. Norway has some of the best paid maternity
benefits in the world. They also have very high wages and productivity, flexible
working arrangements and the world's highest rate of workforce participation,
especially among women (Huffington Post, 2012). Benefits typically include 36 to
46 weeks off with parental benefits paid at 100 percent for the shorter duration of
leave and 80 percent for the longer option (Huffington Post, 2012). Some
companies even allow for new mothers to say home for 12 months after the child

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is born with a 100 percent of wages paid. Also, the mothers exact job position is
held for her return (Clark, 2007). This is remarkable! According to an article,
Norway is proof you can have it all, Norway has workforce participation rates of
almost 80 percent, and female participation of about 76 percent. Female
participation is a full six percentage points ahead of that which prevails in
Australia, the US and Britain. This is partly due to parental leave with universal
access to childcare at highly subsidized rates (Cleary, 2013). This data tells that
women are extremely valued in the workforce, and they feel the need to return to
their positions. The families that receive their full wages paid to them during
leave never see a dramatic difference in household income. They may be weary
to see that difference, therefore return to work after their leave is over.
VI: Conclusion
The first part of this report introduced the United States maternity benefits
and took a look at what percentage of women are in the workforce, the second
part looked at benefits in England, the third part looked at the benefits in Canada,
and the fourth part looked at the benefits in Norway. So, what should the United
States should the maternity benefits to and if it would they increase the women
workforce participation rate?
The United States does not offer women in the workforce maternity
benefits that help the mother or the child. Also, these benefits do not encourage

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the mother to return to the workforce after her leave is up, but instead forces the
family to make tough decisions about if they can get by on one income. These
benefits need to be reformed, and some suggestions would be: longer mandated
leave, and mandated percent of wages paid during leave, flexible work
environment, and mandated job security that upon arrival she would return to her
exact position not “a” position, and mandated universal access to childcare at
subsidized rates. Also, these benefits should be offered in a way so they could
be transferred to the father if the mother chooses to return to the workforce
earlier than the length of her leave. This way she could return to work and the
father could receive the exact same paternity benefits that the mother would
have received.
Implementing these benefits could dramatically increase the percentage of
women that return to the workforce due to the result other countries have seen to
these benefits. Think of how the American economy could and would grow if
there was more productive women in the workforce during recession times.

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References
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