The Impact of Low Investment in Family-Friendly Policies

Compared to European countries, the United States has minimal investment in child care programs and maternity leave policies. All this means, that the U.S. has fewer women who stay in the workforce after they have children. That’s not news. What is news is that the percentage of prime aged women in the workforce has declined dramatically in the past few years. “After climbing for six decades, the percentage of women in the American work force peaked in 1999, at 74 percent for women between 25 and 54. It has fallen since, to 69 percent today.”

The sharpest drop in labor participation is among low skilled, unmarried mothers, but there has also been a dip in higher skilled, married women, too.

It’s hard to work when you have kids. Schools are not set up for working parents. Maternity leave policies are too short. Child care is insanely expensive. If a child has special needs, then the system is even more hostile.

There is no urgency to make reforms in an economy with a 16 percent unemployment rate for men. I think that we’re going to see a lot more small businesses and entrepreneurial work by the higher skilled women in the next decade. Lower skilled women are going to work in the shadows for extremely low wages. Sadly, they are lining up at my dad’s food pantry three hours before opening time in the cold.