Maternity Leave By, Fabiana Nafea

Introduction

  • Maternity leave is a short period of non-attendance from employment
  • The number of new mothers has increased by entering the workforce.
  • During 1961 and 1965, only 14% of mother who participated in the work force.

Point 1

  • How people make efficient decisions or when people face trade-offs for maternity leave
  • Marginal benefit and marginal cost for maternity leave
  • Society, Business, and individuals
  • How to solve it?

Point 2

  • The market forces of supply and demand on maternity leave
  • The own price elasticity of demand, in the short run and in the long run depending on maternity leave and if it's elastic or inelastic and why?
  • why should policy makers consider the elasticity of demand.

Point 3

  • Labor demand has different elasticizes that depends on substitution.
  • Differences between Inelastic Demand and Elastic Demand
  • How to solve the problem?

Point 4

  • What does externality mean and what's its effects on maternity leave?
  • Monopsony power in the labor market
  • Labor market aren't competitive

Point 5 

  • Government failure and its effects on maternity leave
  • What are the regulation that create inefficiency on maternity leave

Text

Intro

Maternity leave is a short period of non-attendance from employment granted to be known as new mothers immediately before and after the pregnancy of childbirth. These policies are pursue at supporting the mother's full recovery for their childbirth. For example, the maternity leave policy in the United States is directed by the Family and Medical Leave Act of 1993, that includes a prevision mandating 12 week of non-paid leave for mothers of new adopted or born children.A brief history about the maternity leave, there were a lot mothers that were prevented from the labor force participation because they were forced by gender norms limited their access to employment

Part 1

For maternity leave, at the federal and state level the maternity leave and breastfeeding night in the workplace has been exists. In this case making decision is really important step that mothers should be careful of because when they have children it important to feed them and stay with them instead of leaving them at the daycare and going to work. In another case it's also very hard for the father to be the only one that work at the house.For parents (leave) , the marginal benefit will be hard to decided because they have to balance between work and family needs. For marginal cost, they might have an decrease in their benefit because the mother will have to stay with her baby for couple of months so there is not going to be much benefit entering the house. Second concept is marginal change that reflects on a mother when she has a small incremental adjustment to a plan of action. This means that when a women gets pregnant, she has to talk and argue about what is better for her either staying with her child or choosing to go and work. As positive statements on maternity leave is that they are unpaid when they get pregnant. As normative statements, the government should pay to the maternity leave as when they get pregnant.

Part 2

Market is a group of buyers and sellers which refers to maternity leave and other people's behavior as they interact with each other in the markets. In the market for maternity leave there is a punch of competition between the employs. Usually there are more males working then females and that's because of the pregnancy that the managers don't want to pay them while they are in pregnancy period so they hire males instead of females. But in case if mothers are working and they get pregnant, the market takes it as an advantage to hire males instead. For example, when mothers stay at home and feed their children the demand increase and supply decreases. When they decided after pregnancy go and work, the supply increases and demand decreases. Price elasticity differ with the time of consumers have to return to a price. Short-run demand and supply curves are different from long-run. In this case the demand for maternity leave is inelastic because it's price elasticity and total revenue is in the long-run. In the case of maternity leave, policy makers should consider the elasticity of demand because they need to know if it's measure of consumers and producers will respond to a change in market condition. This means that when mothers go to the market and ask about their right, the producers should respond to them and try paying them while they are in the pregnancy period. There will be small consequences will identify that they will not survive, because first there is going to be cheaper labor, rely on temporary workers on trades and increasing benefits. From the society's point of view, breastfeeding new parents but leaving labor market. At the end of the story, there no right answer about how to solve it.

Part 3

The differences between Inelastic Demand and Elastic Demand is because elastic labor of demand has lower increase in wages. For inelastic in labor demand it's higher increase in wages. In order for the society to solve the issue is by balance out in the society and in the labor market of demand in case of Elastic demand, and Inelastic demand.

Part 4

First is the price equilibrium doesn't reflects carefully the true costs and the products' benefit, it causes an externalities into market failure. Equilibrium should also have an outcome in the best level of production when it finds the best balance between the benefit and cost of buyers and producers. For maternity leave, it's a combination policies between parental leave. banking loans, and tax can conflict with market failure in order to make decisions to take parental leave. This concept will help with social insurance, and parental leave that encourages child development to improve gender equality the workplace. Second is market failure-market concentration. One of the market concentration is the Monopolistic competition which means a market structure that sells a lot of similar firms but not the same. In the maternity leave, this means large companies will not have any control or don't do anything about the maternity leave because they have a lot of other workers that they care about so that's why they don't do anything about them. But for small companies, the maternity leave has a chance to ask about their rights. . In this case the demand is the children, and the supply is the parents I think. So the demand increases, and supply decreases. In other case, for externality has also negative effects on maternity leave through the jobs. Externality means the uncompensated impact of one person's actions on the well-being of a bystander. External has two effects and they are negatives and positives. According to my topic which is maternity leave, the external has positive affects because having more babies is better for the community and healthy society. For the parents is better to have babies too because when the family is big is more healthy family and they do have more improvement mentally because they become more smart then a small family

Part 5

The government failure means that when government is going throw a situation and they involve into the economy to correct the market failure that happened with created inefficiency regulations because they want to achieve an efficient social location of resources. The impact of government failure to maternity leave is that the government is trying to resolve the issue by trying to bringing back the women to the workforce again because women have been suffering by paying the penalty and the government are failing in order reaching to pay the wage gap. Maternity leave are paying and advising manufacturing strategies for low-paid jobs that took out by women such as cleaning and retail.

Sources

  1. https://en.wikipedia.org/wiki/Maternity_leave_in_the_United_States
  2. http://www.investopedia.com/ask/answers/051515/how-do-externalities-affect-equilibrium-and-create-market-failure.asp
  3. http://www.economicsonline.co.uk/Market_failures/Government_failure.html
  4. https://www.theguardian.com/society/2017/feb/21/mps-warn-pay-gap-not-be-eliminated-generation-government-reject-proposals

Credits:

Created with images by susannp4 - "drip drop of water raindrop"

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