How Big Government Hurts Women
Government-mandated employee perks might sound like a good way to help out working women, but, in reality, these programs do more harm than good. European women are already paying the price, and American women might be next. Carrie Lukas, President of Independent Women’s Forum, explains how keeping the government out of the workplace goes a long way toward keeping women in it.
For more information on Independent Women's Forum visit IWF.org
After Spain passed a law giving women with young children the right to work reduced hours, companies _________________________.
were less likely to hire women of childbearing agewere less likely to promote womenwere more likely to dismiss womenall of the aboveWhat did the Cornell study show, in terms of countries with the most extensive benefits for women?
that women were more likely to have more babiesthat women were more likely to have higher salaries than menthat women were more likely to be in dead-end jobsthat women were more likely to fill executive positionsIn the United States, where… [maternity and family leave] benefits are not mandated, women account for more than 40 percent of senior managers while in more ‘progressive’ Europe, that number is a little over 30 percent.
TrueFalseIn what way has a combination of tax cuts and deregulation (meaning less government) since 2017 been a boon for women?
Women’s weekly median earnings have gone up by almost 5 percent.The unemployment rate for women has fallen to 3.4 percent – an historic low.More women are starting businesses than ever before.all of the aboveRight now, there are _______________________ women-owned businesses.
10.3 million12.3 million14.3 million16.3 million
- Government-subsidized childcare and mandated paid family leave sound good for women but result in lower wages and fewer high-level jobs.
European countries generally offer more extensive benefits to employees, particularly female employees, than the U.S. For example, in Germany, women are given 14 weeks of fully paid maternity leave and another 12 months of partially paid support.
View sourceHowever, a study of 22 countries by two Cornell economists found that women in the European Union are more likely to work part-time and in lower-paid positions and are less likely to hold managerial positions than in the U.S.
View sourceRelated reading: “I Live in a Country with Paid Family Leave. It’s No Magic Bullet.” – Carrie Lukas, The Washington Post
View source- In the U.S., women account for over 40% of senior management positions. In more “progressive” Europe, they account for just over 30%.
In the U.S., women hold 43 percent of managerial positions. They hold less than 30 percent of such positions in Germany.
View sourceThe dramatic disparity appears to be connected to the difference in the two countries’ various employment policies, particularly German’s “women-friendly” policies. The German government mandates 14 weeks of fully paid maternity leave and another 12 months of partially paid support.
View sourceRelated reading: “How Family-Friendly Policies Can Hurt Women’s Careers” – Shana Lebowitz, Business Insider
View source- “Women-friendly” government mandates encourage businesses to assume women will be more expensive and less productive.
Research has found that Europe’s employment mandates and generous women and family-friendly policies, including the right to work part-time and the mandatory provision of child care, “make women more expensive to employ and result in lower take-home pay and fewer job opportunities,” writes Independent Women’s Forum President Carrie Lukas.
View sourceRelated reading: “The Impact of Family-Friendly Work Policies for Women” - Heather LaCombe & Sarah Schupp, Cornell
View source- In 2017, a combination of tax cuts and deregulation was followed by women’s earnings increasing and their unemployment rate dropping.
The free market does a much better job at creating opportunities for women than big government. Since 2017, a combination of tax cuts and deregulation have resulted in women thriving in the workplace. Women’s weekly median earnings have gone up by almost 5 percent.
View sourceThe unemployment rate for women has fallen to 3.4 percent, which is a historic low.
View sourceBetween 2017 and 2018, women started almost 2,000 businesses a day, with an estimated 12.3 million businesses owned by women, which is a 6% increase since 2016.
View source- A majority of American businesses voluntarily offer their employees paid leave.
Despite no federal mandate to do so, a majority of American businesses voluntarily offer some paid leave because they recognize the need to be competitive with other employers.
View sourceMany American companies expanded their benefit packages for employees when the 2017 tax laws took effect.
View sourceRelated video: “The Bigger the Government…” – Dennis Prager
View source- The most truly women-friendly employment policies are those that offer the most flexibility to both employees and employers.
Studies have repeatedly found that federally mandated “family-friendly” policies end up unintentionally hurting women by encouraging employers to perceive them as potentially more expensive and less productive.
View sourceFlexibility is the key to approaching employer-offered benefits, Independent Women’s Forum President Carrie Lukas maintains: “Many employees value paid leave benefits (which is why most American business voluntarily offer some paid leave benefits). But some workers would rather have larger paychecks and fewer benefits. That should be their right. Moreover, some businesses can’t afford to offer paid leave benefits to all workers, and forcing them to do so would require job cuts or closures. Companies need and deserve flexibility.”
View sourceRelated reading: “Liberty Is No War On Women” – Carrie Lukas, Sabrina Shaeffer
View source
The bigger the government, the better for women.
Is that statement true or false? Well, if party affiliation is any indicator, most women under the age of 40 would say “true.”
Young women, especially single women, are among the left’s most loyal supporters. This isn’t surprising given that programs like government-subsidized childcare and government-mandated paid family leave sound like things that make life better for women. But do they really?
Most European governments provide subsidies that allow women to stay home for months—even years—following the birth of a child. And some European countries require employers to offer female employees part-time and flexible work arrangements.
So have European women benefited from these programs? The answer is no—unless you think lower wages, fewer jobs, and fewer management opportunities benefit women.
Why is this the case? Because these supposedly women-friendly government mandates change the way businesses evaluate female employees. It encourages companies to assume that women will not only cost them more, but they’ll be less productive than men.
Spain is a good example. In 1999, that country passed a law giving women with young children the right to work reduced hours. But a study by economists at the IE Business School in Madrid and at Queens College of the City University of New York found that women paid a big price in lost opportunities: Companies were less likely to hire women of childbearing age, less likely to promote them, and more likely to dismiss them compared with men.
When Chile tried similar policies, similar outcomes resulted. In the words of Maria Prada, an economist for the Inter-American Development Bank: “[The purpose of the law was] to help [women] participate in the labor force and achieve more work-family balance, and it’s doing the opposite.”
A study of 22 countries by two Cornell economists showed that in countries with the most extensive benefits for women, women are more likely to be in dead-end jobs, and less likely to become managers or top executives. This is because once the government mandates additional benefits for women, employers place them on the “mommy track,” meaning they assume women will want to work fewer hours whether that’s true or not.
This might explain why in the United States, where these benefits are not mandated, women account for more than 40 percent of senior managers while in more “progressive” Europe, that number is a little over 30 percent.
But Big Government doesn't throw obstacles only at women trying to get ahead. It throws obstacles at women struggling to get by. Here, we don’t have to go to Europe to find examples; there are plenty in the United States.
Take the issue of occupational licenses—government regulations requiring a license to pursue particular professions. Sure, people operating dangerous and complex equipment should have to get special training, take tests, and be licensed. But why are occupational licenses required for hair shampooers and braiders?
In some states, licenses are even required for interior designers and florists. Getting licenses can require hundreds of hours of schooling and entail major fees. That’s not about protecting consumers or public safety. That’s a source of revenue for city and state governments, and a way for some politically powerful lobby groups to keep out competition. And since more women obtain occupational licenses than men, women are disproportionately hurt.
So what’s the solution? Less government, not more.
Since 2017, a combination of tax cuts and deregulation (meaning less government) have been a boon for women. Women’s weekly median earnings have gone up by almost 5 percent. The unemployment rate for women has fallen to 3.4 percent—a historic low. And more women are starting businesses than ever before.
Between 2017 and 2018, women started almost two thousand businesses a day! Right now, there are an estimated 12.3 million women-owned businesses—a 6% increase since 2016. And here’s the topper: Since 2017, more and more businesses have voluntarily offered family benefits to employees. Why? Because the more companies have to compete for workers, the more benefits workers receive. That’s how the free market works—and the opposite of how big government works.
The free market, it turns out, does a much better job at creating opportunities for women than big government does. This not only means better jobs and better pay for women, but also the chance to craft the lives they actually want. After all, not every woman needs or values a generous childcare package.
But when the government mandates benefits, they become, in effect, taxes that every woman—and man—has to pay.
The bigger the government, the better for women? You might want to rethink that one.
I’m Carrie Lukas, president of Independent Women’s Forum, for Prager University.
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