Who should fund maternity / paternity leave?
I don’t see why companies should have to fund parental leave. The incentives are all wrong. It’s a conflict of interest. Companies have little incentive to help parents raise kids. Giving kids a great start with their parents is in the public’s (i.e. government’s) interest.
Companies might even illegally discriminate against women if they know they might have to pay them for leave in the future. It’s bad enough that they won’t be working for a long time, but to have to pay them for it? Makes zero sense from the company’s perspective. But companies are forced to lie and say that it doesn’t bother them.
Companies should be paying employees for productivity in the workplace, not in bed. Here is my proposed alternative: instead of making them pay up front to the employee, instead charge companies of a certain size an extra tax to fund leave. That way, companies are still paying for it, but have no financial conflict of interest against hiring women. Feel free to tell me why it’s a terrible idea.