In 2008, the average weekly pay for men was $556, while for women it was $347.[1] This indicates that female employees are either being poorly paid, or are choosing to work part-time. This should concern Government, since a high percentage of university graduates are women, and this education is heavily subsidised. Longer and higher paid PPL would encourage long-term job-attachment, making use of women’s labour potential. Additionally, the labour performed while on PPL contributes to society and has economic benefits, so should be financially compensated. This labour includes raising productive children, and running the working parent’s household. Moreover, if PPL were longer, there would be less demand for high-cost childcare. It would also assist breastfeeding, which may lessen demand on paediatric healthcare. Because PPL counts toward household income, PPL families would spend more time above the income threshold for means-tested benefits or tax relief. This would decrease government spending on these other transfers. In a recession, longer PPL should reduce redundancy, which would decrease expenditure on unemployment benefits.
[1] Statistics New Zealand 2008.