In the year to 30 June 2008, 26,300 New Zealanders received PPL. However, there were 64,100 live births.[1] This demonstrates that current PPL is not a ‘live option’ for many families. Revision of PPL is needed to address New Zealand’s increasing diversity in family size, composition, and parental role-taking; as well as changes in women’s fertility rates, child-bearing age, education, and paid-work participation.[2] Additionally, in the 2006, the median annual personal income was $31,500 for men and $19,100 for women.[3] Extending PPL would narrow this gap, by compensating stay-at-home parents (who are usually women) for their economically productive occupation. While income inequality is largely caused by women’s higher participation in part-time work, this could itself be a result of PPL’s poor provision for part-time workers.[4] Also, if lengthened PPL encourages more women to enter and remain in paid labour, this will increase New Zealand’s GDP and businesses’ productivity. Finally, there are statistically significant links between family-friendly policies and business performance,[5] and research has shown that EEO for women can help maintain or increase workplace efficiency.[6]
[1] Crichton, Sarah, 2008. “Work Patterns after Paid Parental Leave”. Research Publication, Statistics New Zealand, Wellington. p. 7.
[2] Crichton 2008, p. 6.
[3] For people over 15 years of age. Statistics New Zealand, 2006. “QuickStats About Income”. Census publication. Accessed 19/8/2009 at http://www.stats.govt.nz/Census/2006CensusHomePage/quickstats-about-a-subject/incomes.aspx
[4] Unfortunately, due to time constraints, the eligibility criteria for PPL (including for part-time workers) will not be addressed in this report. However, it is hoped that the arguments given here for longer PPL will motivate future examination of the policy’s other aspects.
[5]Gray, Helen. 2002. “Family-Friendly Working: What a Performance! An Analysis of the Relationship between the Availability of Family-Friendly Policies and Establishment Performance”. Working Paper, Centre for Economic Performance, London School of Economics. Accessed 19/8/2009 at http://eprints.lse.ac.uk/20082/1/Family-Friendly_Working_What_a_Performance!_An_Analysis_of_the_Relationship_Between_the_Availability_of_Family-Friendly_Policies_and_Establishment_Performance.pdf
[6] Australian Federal Equal Opportunity for Women in the Workplace Agency, Why EO Makes Business Sense. Accessed 1/9/2009 at http://www.eowa.gov.au/Australian_Women_In_Leadership_Census/About_Equal_Opportunity/Why_EO_Makes_Business_Sense.asp