Developing Social Policy: Paid Parental Leave Essay - SOC810

This essay, written for a Developing Social Policy course (SOC810) at Macquarie University, explores the nature of paid parental leave in Australia, examining whether it aligns more closely with Titmuss's concept of social or occupational welfare. The introduction outlines the importance of paid parental leave and introduces Titmuss's definitions of occupational welfare, emphasizing employer-provided benefits. The essay supports the view that paid parental leave aligns with occupational welfare. It then contrasts this with arguments against state-supported leave, including potential negative impacts on female employment and economic efficiency. The essay utilizes research and scholarly articles to support arguments and concludes by advocating for policies that enhance economic efficiency and worker choice. References to key readings and authors like Titmuss, Alcock, and Glennerster are included, demonstrating a comprehensive understanding of the topic and its relevant literature.

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PAID PARENTAL LEAVE
By (Student’s Name)
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PAID PARENTAL LEAVE
Introduction
In Australia, all employees are entitled to unpaid parental leave. Under this scheme,
workers can also possess extra entitlements, for example, paid parental leave that is under an
agreement, award, and company policy. Paid parental leave is essential to workers because it
provides them with financial compensation when they are not in their place of work following
the adoption or birth of a child. According to Titmuss, occupational welfare is made up of
market-driven social benefits offered by the employers of the private sectors and the government
in its duty as an employer. Generally, Occupational welfare may be understood in different ways.
Firstly, it may cover the services and benefits linked to social provision. Secondly, occupational
well-being may cover other non-welfare benefits not related to social policy. In this paper,
occupational welfare remains understood as social protection that includes both advantages as
well as services, with a functional duty towards public welfare (Borowski and Kingson 2019).
This paper support that paid parental leave ought to be understood according to the perspective
of Titmus's terms of occupational welfare.
Titmuss defined occupational welfare as the benefits provided by employers to their
employees. According to him, these benefits include company health care, occupational
pensions, sick pay schemes, education, training grants, rail tickets, company cars, and subsidized
meals (Gans 1995). Titmuss also argues that these benefits may disproportionately favour
middle-class people (Huang and Yang 2015). This definition is true because higher income
earners that are employed in larger organizations where generous housing, private health,
education allowances are being provided obtain more benefits as compared to lower income
earners. Also, the argument of Titmuss on occupational welfare that fiscal as well as

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occupational welfare is more beneficial to people with higher income as compared to those with
a lower income is true in that most of the middle classes will benefits under this scheme as
compared to the poor. Also, the paid parental program would increase participation rates of labor
force by encouraging most women to remain in the labor force especially when they are pregnant
instead of dropping out completely (Brinton and Mun 2015). The argument of Titmuss on
occupational welfare is also essential because most studies has revealed that most kids fare much
well when fathers and mothers have access to paid parental leave. This therefore proved that
occupational welfare is more essential to all the employees.
It is also true that the welfare state may not be applied as a tool that compassionately
guards the Citizens’ welfare because it does not function in a social vacuum. This also supports
the argument of Titmuss on occupational welfare. Also, Titmuss used fiscal welfare as a tool to
measure the range of tax breaks as well as the allowances the government grants to households
and individuals. These allowances indicate a form of social services that can be seen even today.
Even though Titmuss argues that social policy and occupational welfare will meet the
needs of most people especially the middle classes in most countries, some challenges are
associated with the use of social policy and occupational welfare. Some of the arguments that are
against Titmus's arguments on occupational welfare are discussed below. First, Titmuss affirms
that state-supported leave would enhance the outcomes of the labour market and reduce gender
as well as labour-market inequality (Alcock and Glennerster 2001). According to me, this is not
true because ample data display that the entire private markets offer paid leave at rates around
30-50% points higher as compared to proponents claim. According to some researchers, there
was the growth of paid private leave provision for the last 50years. This trend shows that the
industry remains responsive to worker demands. Second, employees cannot be better off,

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especially under government paid leave. Recent research indicates that most of the employees
will be worse off under parental paid leave. Most of government intervention offers new
incentives, and people are expected to adapt accordingly. In the simplest term, managers
(employers) can offset the cost linked to government-supported leave mainly by lowering
employee benefits or workers wagers. If managers (Employers) failed to offset costs thru wage
reductions, then challenges will occur such as benefit or wage reductions, female unemployment,
or reduced opportunities for women, even when this leave remains accessible to both genders.
Therefore, the government-supported leave can create side effects that decrease economic
efficiency (Glennerster 2009). These will negatively affect women in that majority of them take
parental leave as compared to men. Under state-supported leave, young women remain more
expensive as compared to other employees, so most employers will not employ women or might
limit leadership or training opportunities for women (Stearns and White 2018). In this case, this
supported leave will increase discrimination based on gender in the labor market.
Also, it is true that government intervention will not correct labor market or gender
inequality in ways that will benefit all people. For instance, most families will respond to the
established policy by increasing female's household work contributions as compared to Men's
household work contribution (Rossin-Slater 2017). This redistributive effects spearheaded by the
intervention of the government may harm most workers. Many research studies indicate that
even if companies could completely offset costs by lowering wages, there will be additional
costs linked to workers taking more leave. However, more companies will not be fully offset the
cost associated with State supported leave by reducing workers' wages due to union contracts,
minimum wages laws, or other reasons.
Conclusion

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This paper supports that policymakers and the government should adopt the argument of
Titmuss on occupation welfare. Also, the government and policymakers should consider
improving the lives of workers through reforms that increase choice, increase economic
efficiency, as well as eliminate obstacles to flexible work.

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References
Alcock, P. and Glennerster, H. eds., 2001. Welfare and wellbeing: Richard Titmuss's
contribution to social policy. Policy Press.
Borowski, A. and Kingson, E., 2019. The Role of Social Insurance in Alleviating Poverty
Australian Prospects. Revisiting Henderson: Poverty, social security and basic income.
Brinton, M.C. and Mun, E., 2015. Between state and family: managers' implementation and
evaluation of parental leave policies in Japan. Socio-Economic Review, 14(2), pp.257-281.
Gans, H.J., 1995. The War against the Poor. The Underclass and Antipoverty Policy.
BasicBooks, 10 East 53rd Street, New York, NY 10022-5299.
Glennerster, H. (2009). Understanding the finance of welfare: what welfare costs and how to pay
for it. Policy Press.
Huang, R. and Yang, M., 2015. Paid maternity leave and breastfeeding practice before and after
California's implementation of the nation's first paid family leave program. Economics & Human
Biology, 16, pp.45-59.
Rossin-Slater, M., 2017. Maternity and family leave policy (No. w23069). National Bureau of
Economic Research.
Stearns, J. and White, C., 2018. Can paid sick leave mandates reduce leave-taking?. Labour
Economics, 51, pp.227-246.