The Effects of Paid Family and Medical Leave on Employment Stability and Economic Security

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    The Efects o Paid Family andMedical Leave on Employment

    Stability and Economic SecurityHeather Boushey and Sarah Jane Glynn April 2012

    www.americanprogress.o

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    The Efects o Paid Family andMedical Leave on EmploymentStability and Economic Security

    Heather Boushey and Sarah Jane Glynn April 2012

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    Contents 1 Introduction and summary

    3 The reality: Most workers are caregivers too

    13 Paid amily and medical leave will increase lietime

    employment

    21 Conclusion

    23 About the authors and acknowledgements

    24 Endnotes

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    Introduction and summary

    Tough i may seem counerinuiive, providing paid amily and medical leave

    when people canno work due o caregiving responsibiliies helps keep people

    employed. In he shor erm i keeps people away rom work, bu in he long erm

    i reduces he number o people who have o qui heir jobs when hey need ime

    o o care or a seriously ill amily member or when hey have a new child. Paid

    medical leave serves his same purpose or workers who have shor-erm bu seri-

    ous illnesses ha preven hem rom working.

    Te realiy is ha mos workers also have caregiving responsibiliies a one ime or

    anoher. Mohers are breadwinners or co-breadwinners in wo-hirds o amilies

    and wih an aging populaion, more and more workers need ime o o care or

    an ailing loved one. ogeher, paid amily and medical leave makes i easier or

    employees acing he need o ake ime o provide care or a amily member o

    ransiion back ino heir jobs.Our analysis in his paper nds ha a ederal paid

    amily and medical leave program would mos likely have posiive eecs on

    employmen and lieime income. Naional daa consisenly show ha access o

    any orm o parenal leave, paid or unpaid, makes women more likely o reurn

    o work aer giving birh.1 Esimaes are ha hese eecs would be larges or

    less-educaed and lower-income amilies, who currenly have he lowes levels

    o access o any orm o leave, paid or unpaid. Te benes would be paricularly

    srong or single mohers, who are more likely o be lower income and who do no

    have a spouse o ake over caregiving responsibiliies.2

    Furher, i is no unreasonable o suspec ha he eecs o saying in he labor

    orce or workers needing medical leave would be similar o hose o workers

    who need caregiving leave. Te reason: A no-insignican share o bankrupcies

    ollow a worker missing wo or more weeks o work due o illness, or he illnesso a amily member.3 Wihou a doub, odays lack o paid amily and medical

    leave cerainly hreaens he employmen securiy or millions o workers because

    i reduces he chances ha a caregiver will say employed a heir curren job.

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    Workers who have a new child, experience a personal medical emergency, or have

    an ailing amily member oen eiher have o qui heir jobs o provide shor-erm

    inensive care or lose heir jobs because hey are unable o ake job-proeced leave.

    When workers have o qui or are red as a resul o needing ime o rom work,

    i can ake hem signicanly longer o nd anoher job, compared o workerswho are able o remain conneced o he labor orce. Our proposed paid amily

    and medical leave program, Social Securiy Cares, would esablish a naionwide

    program or paid amily and medical leave or nearly all U.S. workers and would be

    adminisered hrough he Social Securiy Adminisraion.4 Te implemenaion o

    his program would in all likelihood increase employmen securiy and economic

    securiyparicularly among he mos vulnerable workers, whose economic con-

    ribuions are oen vially imporan or he economic well-being o heir amilies.

    Social Securiy Cares also would improve reiremen securiy and help close he gap

    in pay beween women and men. Paid amily and medical leave would help reducehe gender pay gap because access o paid leave will increase he job enure raes,

    lieime earnings, and economic securiy in reiremen or women, who are currenly

    he mos likely o ake unpaid leave or drop ou o he workorce when amily care-

    giving responsibiliies presen hemselves. Furher, paid leave will encourage more

    men o ake caregiving leave, hus reducing he sigma around leave-aking while

    providing men wih greaer access o he work-lie balance hey increasingly desire.5

    Our proposal builds on he success o he Family Medical Leave Ac o 1993. Tis

    was he rs naional policy recognizing ha mos workers have imes when hey

    canno be a work in order o be able o provide care o heir amilies. Tis law led

    o increases in job enure or workers who had access o Family and Medical Leave,

    bu i has been limied in is eeciveness in esablishing economic securiy and

    employmen sabiliy because i is unpaid.6 Furher, i is no universal, wih hal he

    workorce ineligible due o heir curren job enure or he size o he company or

    which hey work (companies wih less han 50 workers are exemp rom he law).

    Workers who are no covered by he ederal law are more likely o be people o color

    and young aduls in heir childbearing years. Wihou access o reasonable amily

    and medical leave policies, workers are orced o choose beween heir jobs and heir

    amilies or heir healh. Tis issue is especially salien in hese ough economic imes.Once a worker has o qui in order o provide care or recover rom an illness, heir

    chances o nding work in his economy are quie low. In January 2012 here were

    3.7 unemployed people seeking work or every job opening, and 42.9 percen o job

    seekers had been unemployed or more han six monhs.7

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    The reality: Most workers are

    caregivers too

    Families need womens earnings, and aduls in amilies wih caregiving respon-

    sibiliies more oen han no need o say employed. Mos mohers work, and

    especially or low- and moderae-income wo-paren amilies, his is because he

    earnings o mohers are needed. In 2009 nearly wo-hirds o mohers wih a child

    under he age o 6 were employed, and he only married-couple amilies ha have

    seen real income growh since he 1970s are hose wih a working wie.8

    Single parens, he majoriy o whom are women, oen do no have he opion ochoosing caregiving over paid work. Tis means hey have no choice bu o juggle

    boh responsibiliies. Single mohers are jus as likely o be employed as single

    childless women and are more likely o work han married women.9

    Parens wih young children are no he only ones who need o provide unpaid

    caregiving o heir amily members. Te rs wave o baby boomers urned 65 in

    2011, and by 2050 i is projeced ha up o 20 percen o he populaion will be

    older han he reiremen age.10 Nearly one in ve o hose over he age o 65 need

    help wih basic daily aciviies, and mos people who provide care or older amily

    members are hemselves employed.11 Fory-wo percen o workers have provided

    unpaid elder care o a amily member in he pas ve years, and nearly hal o

    workers expec o need o provide elder care in he nex ve years.12

    Te curren lack o paid amily and medical leave reduces he chance ha a care-

    giver says employed a heir curren job. Research shows ha aking more ime

    away rom workaking longer leaves because here is no paid opionlowers

    lieime employmen and lieime earnings. Te U.S. Census Bureau nds ha new

    mohers who have access o paid maerniy leave are more likely o reurn o heir

    previous employer, and 97.6 percen o hose who reurn o he same employer doso a heir previous pay level or higher, whereas 30.6 percen o women who have

    o change employers aer giving birh experience a drop in pay.13

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    Women o color are less likely o have access o paid maerniy leave, and he odds

    decrease or all women he younger hey are or he less educaion hey have.14

    Tose earning he leas in our economyhe young, he less educaed, and

    people o colorare also he mos likely o have o leave heir jobs and o experi-

    ence a wage-drop aer changing employers.15

    Tese kinds o job swichesmade ou o necessiy no as sraegic career

    choicesare associaed wih less upward earnings mobiliy. Women are more

    likely han men o experience amily-relaed quis, and hacombined wih a

    young womens greaer likelihood o spending exended periods o ime ouside

    o paid employmen because o amily caregiving responsibiliiesconribues

    o wage dierences beween men and women and beween mohers and childless

    women.16 Furher, he negaive economic consequences o changing employers is

    sronger or less educaed workers, he very group ha is less likely o have access

    o paid amily and medical leave and hus is more likely o have o separae rom

    employmen should hey need o provide unpaid care o a amily member.17

    While he majoriy o research on paid amily and medical leave ocuses on he

    amily aspec, here is daa o sugges ha paid leave is equally imporan o

    workers who need o recover rom heir own serious illness or injury. In 2011

    only 37 percen o privae-secor workers had shor-erm disabiliy insurance,

    wih lower raes or par-ime and lower-wage workers.18 Unorunaely, a reliable,

    naionally represenaive analysis on he employmen impacs o shor-erm bu

    serious illnesses or workers is no currenly available.

    Bu i is no unreasonable o suspec ha he eec on saying in he labor orce

    or workers needing medical leave would be similar o hose o workers who need

    caregiving leave. In 2001, 25 percen o dual-income couples and 13 percen o

    single-paren amilies led or bankrupcy aer having o miss wo or more weeks

    o work due o illness or he illness o a amily member.19 A leas a porion o

    hose bankrupcies would likely have been avoided had hose workers had access

    o a naional paid amily and medical leave program.

    Family Medical Leave Act helped but more action is needed

    Te Family Medical Leave Ac o 1993 provides up o 12 weeks o unpaid, job-pro-

    eced leave o eligible workers, and research has shown ha i increases job enure

    and amily economic securiy. Women who gave birh in he years aer he passage

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    o he law were more likely o reurn o work, more likely o reurn o he same

    employer, and ook less ime away rom paid employmen han women who gave

    birh in he years immediaely preceding is passage. All hese dierences were ound

    o be saisically signican and economically meaningul.20 Tis is a srong indica-

    or ha women previously le he workorce aer having children no only because

    hey desired o ake exended ime o o raise heir children bu also because heysimply did no have jobs waiing or hem when hey were ready o reurn.

    When workers who mus emporarily ake amily and medical leave enjoy job pro-

    ecion, hey are able reurn o he workorce more quickly because hey do no

    have o spend ime searching and applying or a new job. Tis bene is paricu-

    larly imporan given he curren ragile sae o our economy.

    Workers who experience a emporary disabiliy, serious illness, or injury also ben-

    e rom he abiliy o ake paid ime away rom work o recover. In he absence

    o job-proeced unpaid or paid leave, workers may need o reurn o work earlierhan is medically advisable or economic reasons. Tis can increase he likelihood

    o relapsing and, depending on he naure o he work, may pu he worker or oh-

    ers in danger. Access o paid ime o is associaed wih workers recovering more

    quickly and compleely.21 While mos employers do no currenly oer hese ypes

    o benes, paricularly o low-wage workers, research has shown ha workplace

    exibiliy, including access o paid leave, is cos-eecive and resuls in greaer pro-

    duciviy and decreased urnover as i allows more workers o remain employed

    aer experiencing a serious bu shor-erm illness or injury.22

    Tree problems are ha only abou hal o he U.S. labor orce is eligible or

    unpaid leave under he Family and Medical Leave Ac, which means many work-

    ers who need he abiliy o ake leave he mos are excluded, and since he leave

    is unpaid, many canno aord o ake i.23 Te law only covers workers who have

    been employed a leas par ime by a single company or a leas a year. And i

    does no include par-ime workers and does no calculae hours across employ-

    ers; eligibiliy is based on hours worked wih a single employer. Ye more han a

    hird o young parens have been wih heir curren employer or less han a year,

    wih even higher raes or people o color, and many low-income workershe

    leas likely o be able o aord o ousource careare employed in muliple par-ime jobs.24

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    Even when workers are eligible or unpaid leave under he Family and Medical

    Leave Ac, hey oen canno aord o ake i. A 2000 survey o eligible employers

    and employees, conduced by research company Wesa or he U.S. Deparmen o

    Labor, ound ha oen workers who needed leave did no ake i or nancial rea-

    sons because he leave is unpaid. Almos 80 percen o eligible workers who did no

    ake leave aer a qualiying lie even said ha hey would have had i been paid.25

    Unpaid leave is oen difcul or many workers o uilize and also provides litle

    encouragemen or men o ake caregiving leave. Te language o he law is gender

    neural, as each paren o a new child is alloted he same lengh o leave12

    weeksregardless o gender. Bu because he leave is unpaid and because men

    ypically earn more han women, amilies oen nd i is no nancially easible or

    male parners o ake unpaid leave. Some men also assume ha unpaid leave is no

    inended or hem precisely because i is unpaid.

    Tis eeds ino a vicious cycle because women are more likely o ake ime ou

    o he paid workorce o provide caregiving, which conribues o he wage gap

    beween men and women. Abou 10 percen o he gender wage gap is due o di-

    erences in work experience beween men and women, which are oen he resul

    The Family and Medical Leave Act, signed into law in 1993 by ormer

    President Bill Clinton, provides workers with unpaid job-protected

    leave or up to 12 weeks in order to:

    Care or and bond with a new child ater birth or adoption

    Provide care or a seriously ill amily member

    Recover rom their own serious illness

    The law was amended twice by President Barack Obama, rst in 2008

    and again in 2009. The amendments extended unpaid amily and

    medical leave to military amilies under the ollowing circumstances:

    Spouses, parents, children, and next-o-kin to current members

    o the armed orces who experience a serious illness or injury that

    renders them medically unt to perorm their duties may tak

    to 26 weeks o unpaid job-protected leave in order to provid

    to the military member.

    Spouses, parents, and children o members o the National G

    or reserves may take up to 12 weeks o unpaid job-protected

    to address circumstances that arise out o the military memb

    absence due to active duty or deployment.

    To qualiy, individuals must be employed with an organization

    employs 50 or more workers within a 75-mile radius, have been

    their current job or at least 12 months, and have worked at tha

    or a minimum o 1,250 hours within that time period.

    Family and Medical Leave Act o 1993Fast acts

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    o caregiving responsibiliies.26 Encouraging and enabling more men o ake leave

    is an imporan componen o reducing he gender wage gap.

    In spie o he value ha our culure places on parening, mohers coninue o

    receive less pay or he same work han childless women. For women under 35

    years o age, he wage gap beween mohers and nonmohers is greaer han hegap beween women and men.27 Te mohers wage penaly is esimaed a

    approximaely 7 percen per child, and jus under one-hird o he gap is atribued

    o he consequences o aking leave.28 Noably, more han 40 percen o he gap

    canno be atribued o any measurable produciviy-relaed characerisic.

    Tis eec is only presen or women. Te arrival o a new child has no noiceable

    impac on mens employmen, and research nds ha i acually increases employ-

    men and salary oers.29 When leave is paid, upake increases among men, which

    we would expec o promoe greaer gender equiy in caregiving and lead o a

    decline in he wage gap.

    Lower ake-up o amily leave among men perpeuaes he culural noion ha

    caregiving leave is only or women and unil his ideology changes, i will be near

    impossible or women o achieve equiy in he workplace.30 Men are more likely

    han women o use unpaid leave or heir own illness or o care or an ailing amily

    memberin par because he law only allows leave o care or ones own parens and

    no or in-lawsbu women are much more likely o ake his unpaid leave o care

    or a child.31 Many o he imporan cour cases abou he Family and Medical Leave

    Ac have been abou employers biases ha caregiving is or women no men.32

    Unique challenges caring for older workers

    A wealh o evidence shows ha amily caregivers or he elderly are highly likely

    o experience employmen problems. Tis is because hey oen mus reduce heir

    working hours or leave employmen o provide care and because heir jobs are less

    likely o be waiing or hem once heir caregiving responsibiliies have passed.

    Fory-wo percen o workers have provided elder care o a paren or relaive in he

    pas ve years, and 49 percen expec o wihin he nex ve years.33

    In he same way ha women are expeced o provide he majoriy o child care,

    hey are also he mos likely amily members o be enlised o provide unpaid

    care o he elderly. More han wo-hirds o he unpaid caregivers or he elderly

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    are women,34 and mos o his care is provided by amily membersnamely

    wives and adul daughers.35

    A sudy conduced by he Naional Alliance or Caregiving and he American

    Associaion o Reired Persons ound ha o he approximaely 65.7 million

    Americans who serve as unpaid caregivers o he elderly or special needs children,wo-hirds (66 percen) repored a reducion in heir labor orce paricipaion due

    o coming in lae, leaving early, or aking ime o during he day o provide care. A

    urher one in ve (20 percen) repored aking a leave o absence, oen unpaid,

    o deal wih heir caregiving responsibiliies.36 Caregiving responsibiliies can have

    an obvious impac on wages, pensions, and Social Securiy benes.

    While boh men and women see a reducion in heir paid work hours when

    providing unpaid elder care, he eec is sronger or women.37 While men who

    provide wo or more hours o care o heir elderly parens per week experienced

    a 28 percen reducion in heir paid employmen hours, muliple sudies nd hawomens paid work reducion was more han 40 percen.38

    Sill, men do provide unpaid care o inans and ill amily members. Paid am-

    ily and medical leave would help hem o beter balance heir commimens and

    would aciliae heir reurn o paid employmen, hus creaing addiional payroll

    ax conribuions o Social Securiy.

    Employers only fill in some of the gapand only for some workers

    Because paid amily and medical leave is no currenly available o mos workers, i

    means ha when a worker experiences a work-limiing illness or needs o provide

    care o a amily member or new child, here are ew opions. For mos he only

    opions are o cobble ogeher whaever orms o leave hey may already have such as

    vacaion or sick leave, which is oen inadequae, or o qui. Unless a worker is lucky

    enough o have an employer ha volunarily oers paid leave, he choices available

    o hem may be less han opimalor hey may have no real choices a all.

    Te curren lack o a naional paid amily and medical leave program means haemployers who provide leave no only have o cope wih an employees need or

    ime away rom work bu also mus nd a way o nance he leave hemselves.

    While oering paid amily and medical leave does have benes or employers,

    placing he ull burden on hem has some perverse incenives: Workplaces wih

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    a high share o workers o child-bearing age or older workers who may be more

    likely o have healh problems or need o care or an ailing relaive ake on a larger

    risk or amily leave expenses.

    Furher, here are no naional guidelines ha regulae who is eligible or leave

    wihin a rm. As a resul, paid leave is oen oered as a perk o only he moselie employees, even hough caregiving responsibiliies are el universally, and

    workers a he botom o he income specrum oen have he mos difculy

    managing employmen and caregiving responsibiliies. In he nex secion o our

    repor, we propose remedies o his problem or employers, as well as oher rec-

    ommendaions o address he gaps in amily and medical leave in our naion.

    Very ew workers have paid leave earmarked specically or bonding wih a new

    child, caring or a seriously ill amily member, or recovering rom a serious illness

    rom heir employer or hrough heir sae. In 2011 only 11 percen o all U.S.

    workers had access o paid leave specically or amily and medical leave.39 Morecommonly, workers are able o ake ime o by cobbling ogeher various kinds o

    paid ime, including vacaion days, sick days, and/or personal days.

    I workers have paid ime o specically or he kinds o condiions covered by

    he Family and Medical Leave Ac, i is mos likely because hey have access o

    emporary disabiliy or paid maerniy leave, boh o which provide income when

    a worker is seriously ill or or new mohers o recover rom childbirh. Abou 4 in

    10 (38 percen) employees have access o emporary disabiliy insurance hrough

    heir employer.40 Furher, workers in ve saes (Caliornia, Hawaii, New Jersey,

    New York, and Rhode Island) and Puero Rico have access o sae emporary

    disabiliy insurance, which provides parial wage replacemen when an employee

    canno work due o illness or disabiliy or in order o recovery rom pregnancy.

    Te Pregnancy Discriminaion Ac oulined ha i an employer oers emporary

    disabiliy insurance, i mus cover maerniy leave. Tere is no ederal emporary

    disabiliy insurance program, however, alhough here is a ederal program or

    workers who have permanen, work-limiing disabiliies, called Social Securiy

    Disabiliy Insurance. In erms o wha is currenly available, eligibiliy require-

    mens or sae and employer-based programs vary widely, and hese programs dono cover caregiving or bonding leave. (See box or how our join proposal wih

    he Hamilon Projec provides a remedy his problem.)

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    Mos workers, however, are no covered by disabiliy insurance programs and

    urher, he coverage ypically does no include baby bonding or caring or a

    loved one. Tis is rue even among he op rms in he Unied Saes: In a survey

    o Forune 100companies, he U.S. Congressional Join Economic Commitee

    ound ha hree-quarers (73.6 percen) oer mohers eiher paid amily or dis-

    abiliy leave, bu only one-hird (32.1 percen) repored oering paid amily andmedical leave o ahers.41

    Even when disabiliy or maerniy leave is oered, here are wide dierences in

    access across groups o workers, and employers end o provide hese as a perk

    o higher-paid employees. According o he U.S. Census Bureau, among rs-ime

    mohers who gave birh beween 2006 and 2008, abou wo-hirds o mohers

    wih a bachelors degree or higher received paid maerniy leave, bu only 18.5

    percen o hose wih less han a high school degree dida rae which is virually

    unchanged since he early 1960s.42 (see Figure 1)

    FIGURE 1

    Uneven leave

    Percentage o women using some orm o paid leave, including all paid maternity,

    sick, vacation, and other orms o leave

    Source: 1961-1965 to 1981-1985: U.S. Census Bureau, Current Population Reports, Series P23-165 (Work and Family Patterns of American Women), Table B-9; 1991-1995: P70-79 (Maternity and Emplo

    Patterns: 1961-1995), Figure 4; and 2001-2003: Survey of Income and Program Participation, 2008 Panel, Wave 2.

    Less than high school High school graduate Some college Bachelors degree or more

    0

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    1961-1965 1971-1975 19811985 19911995 2001-2005 2006-2008

    1916 16

    14

    2226 27

    22

    39

    49

    60

    19

    32

    47

    66

    20

    43

    49

    59

    18

    29

    40

    63

    18

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    11 cn an pg |t e p F l n ml Lv

    As Ann OLeary explains in Te Shriver Report: A Womans Nation Changes

    Everything,were i no or labor unions coninually negoiaing or paid leave in

    collecive bargaining agreeemens ha cover less-educaed, lower-wage workers,

    we would expec hese raes o be even lower. One o he only reasons ha work-

    ers wih less educaion have any access o maerniy leave a all is because labor

    unions have hisorically negoiaed or i in collecive bargaining agreemens haperain o low-wage workers.43

    Tis leaves mos workers o cobble paid leave rom oher kinds o leave heir

    employer oers. No all workers have access o any kind o paid leave, however, and

    among hose who have paid leave, he number o days is relaively small. Based on

    daa rom a survey o employers in 2011, he U.S. Deparmen o Labor repored

    ha 38 percen o all workers in privae companies had access o paid personal leave,

    63 percen had access o paid sick leave, and 77 percen had access o paid vacaion.44

    Workers who have access o paid sick days have a median o 6 days, and workers

    wih access o paid vacaion days have a median o 10 aer one year o service.45 Tismeans ha workers who need ime o bond wih or care or a new child or who need

    o care or a seriously ill loved one oen have litle, i any, paid ime o.

    Te ac ha some workers have access o some orms o paid leave does no

    necessarily mean ha hey will be able o ake i when hey need o. Vacaion days

    oen canno be scheduled wihou permission rom a supervisor, and sick days

    are usually inended o be aken or sel-care and may require cericaion rom a

    physician in order o be used, meaning ha hey canno be used o care or an ill

    amily member. Mohers who give birh and also have access o shor-erm disabil-

    iy leave hrough heir employer can use i as amily leave, bu his does no cover

    ahers, adopive parens, or hose needing o provide care o seriously ill amily

    members. Even or hose workers who may have he median number o paid sick

    days and vacaion days and he abiliy o ake hem whenever hey choose, 16 days

    o rom work is no enough ime o recover rom childbirh, bond wih a new

    child, or recover rom or care or someone wih a serious illness such as cancer.

    Te workers who are leas likely o be oered paid amily and medical leave are

    hose who need i he mos: par-ime and low-income workers who canno aord

    o ousource heir responsibiliies o paid caregivers. For hose a he very botomo he income specrum, coverage is even more sparse: More han 50 percen o

    he working poor, working welare recipiens, and workers who recenly le wel-

    are do no have access o any orm o paid leave a all, and hose who do are likely

    o have only one workweek or less.53

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    The Center or American Progress, in conjunction with the Hamilton

    Project, has a proposed plan to modernize Social Security Disability

    Insurance.46 Employment rates or workers with disabilities have been

    declining since the late 1980s, while the number o Social SecurityDisability Insurance recipients has increased.47 At present, workers

    are only eligible or these benets i they ully exit the labor orce,

    and workers who are awarded benets wait an average o 12 months

    beore receiving any income replacement.48 This means that employ-

    ees with work-limiting disabilities that are not necessarily career-end-

    ing must not only sever their ties to the workorce in order to receive

    benets, but they must also wait a year to receive them.

    In order to acilitate employment or workers with disabilities and

    to help employers comply with the Americans with Disabilities Act,

    the Center or American Progress and the Hamilton Project propose

    that private disability insurance would be extended to virtually all

    U.S. workers. Partial wage replacement would be made available to

    eligible workers who experience a work-limiting disability starting

    90 days ater the onset o the disability and would continue or up

    to 24 months. I the worker remained unable to return to work at the

    24-month mark, he or she would be able to transition to traditional

    Social Security Disability Insurance benets.

    Slightly more than hal o all these recipients qualiy due to mental

    or musculoskeletal disorders. These types o claims are more likely

    to be led by younger workers who have the greatest potential or

    uture labor orce participation.49 Providing benets more quickly or

    employees who experience work-limiting disabilities and helping them

    to transition back to work when they are able will increase employment

    rates or workers with disabilities, save unds, and increase the long-

    term solvency o Social Security Disability Insurance.

    Paid amily and medical leave, as administered through the Social

    Security Administration, would help protect workers who experience a

    short-term but serious illness by providing up to 12 weeks o paid leave

    or them to recover beore returning to work. The sel-care criteria isthe same as is outlined in the Family and Medical Leave Actnamely

    that the worker must be suering rom a work-limiting disability

    has been veried by a licensed medical practitioner. Slightly mor

    hal o all leave taken under the Family and Medical Leave Act ar

    or sel-care, and 98 percent o all leave-takers return to work witsame employer at the end o their leave.50

    Currently only workers in the ve states with temporary disabil

    insurance programs are able to receive benets or illnesses an

    conditions that are serious but not career-ending. Social Securi

    Cares would extend this insurance to nearly all workers, regard

    place o residence. In our o the ve states with temporary disa

    insurance programs, a smaller percentage o residents receive S

    Security Disability Insurance benets than the national average

    showing that access to more immediate but short-term partial

    replacement is not associated with higher levels o receipt o S

    Security Disability Insurance.51

    Under the proposed revamping o Social Security Disability Ins

    however, those workers whose conditions prevent them rom r

    ing to work within the 12-week time period aorded through S

    Security Cares would then be eligible or partial wage replacem

    through private disability insurance, which would start as soon

    their Social Security Cares leave ended. Workers whose disabili

    prevented workorce involvement or more than 24 months wo

    then be able to transition to Social Security Disability Insurance

    benets. This constellation o programs would ensure that wor

    experiencing serious illnesses and disorders would not be orce

    completely exit the labor orce unless necessary and would ens

    that partial wage replacement was available to workers and th

    amilies in their time o need.

    That these benets dovetail with one another is particularly im

    tant. With the costs o health care so high, most amilies canno

    survive on only one paycheck. Forty-three percent o amilies h

    little in savings that they would all into poverty within three m

    i they suered an economic shock such as losing a job.52

    CAP and Hamilton proposal or Social Security Disability Insurance

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    Paid family and medical leave will

    increase lifetime employment

    Paid amily and medical leave, i oered o everyone, will increase employmen sa-

    biliy and lieime employmen, especially or hose workers who need i he mos.

    Our proposed program, Social Securiy Cares, would amend he Social Securiy Ac

    o allow workers o earn benes when hey need amily and medical leave.54

    Our sociey already recognizes ha here are cerain circumsances ha preven

    employees rom working, including disabiliy, reiremen, and involunary unem-

    ploymen. In hese insances, we have paid social insurance programs. When anew child is born, a worker has serious illness, or here is a serious illness o a close

    amily member, abou hal o all U.S. workers have job-proeced leave hrough he

    Family and Medical Leave Ac. Social Securiy Cares would exend his kind o

    social insurance bene by providing income suppor o urher aciliae workers

    leave-aking or reasons covered by he exising law.

    Women now make up jus under hal o all workers on U.S. payrollsa monu-

    menal shi in he day-o-day lives o American amilies. Gone are he days when

    mos amilies had a say-a-home spouse who could ake care o a sick child or

    an ailing elderly paren. In mos amilies oday, all o he aduls work. And while

    many people enjoy he work ha hey do, he majoriy o Americans work because

    hey nancially need o be employed.55

    Eligibiliy or Social Securiy Cares benes would ake ino accoun age and

    employmen hisory, so ha even workers who are jus beginning heir careers

    or work par-ime can be eligible. Workers would be able o access parial wage

    replacemen while aking up o 12 weeks o leave aer he arrival o a new child, o

    recover rom a serious illness, or o provide care or a seriously ill amily member.

    (see box on nex page)

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    Most employees in the United States who need to take leave rom

    work ollowing the arrival o a new child, the serious illness o a am-

    ily member, or their own serious illness have no options or income

    replacement. At best ederal law may protect them rom losing theirjob but only i they have been employed or long enough (at least 12

    months), worked enough hours (at least 1,250 hours in the previous

    year), and work or a large enough employer (at least 50 employees

    in a 75-mile radius). These restrictions mean that about hal o private

    sector workers are ineligible or job-protected leave.56 Nearly 90

    percent o those who needed leave but did not take it cited nancial

    reasons.57 Social Security Cares, a program proposed in the Center or

    American Progress report, Helping Breadwinners When It Cant Wait,

    and included in CAPs proposal to modernize Social Security, called

    Building It Up, Not Tearing It Down, would begin to address these

    inadequacies in our current ederal employment laws.58

    Social Security Cares would provide up to 12 weeks o partial wage

    replacement or eligible workers who need to take leave rom work

    in order to bond with a child ater birth or adoption, to recover rom

    their own serious illness, or to provide care or a seriously ill am-

    ily memberthe same length o leave and qualiying conditions

    provided in the Family and Medical Leave Act o 1993.59 Similar to the

    Family and Medical Leave Act, Social Security Cares leave would be

    gender neutral, meaning that men and women qualiy or the same

    amount o leave, which would encourage greater uptake by men.

    Social Security Cares, however, expands the denition o amily to

    include domestic partners and other amily members, as nine states

    and the District o Columbia have already done.60

    The program would be administered by the Social Security

    Administration. More inormation regarding the administration o

    Social Security Cares can be ound in Center or American Progress

    Senior Fellow Ann OLeary, Matt Chayt, and Eve Weissmans report,

    Social Security Cares: Why America is Ready or Paid Family and

    Medical Leave.

    In order to ensure workers remain in the labor orce, coverage w

    be based on whether a worker has established the necessary e

    ment history to be eligible or Social Security Disability Insuran

    Eligibility or this program is age-adjusted, meaning that youngworkers with less work-history can still be covered. Because elig

    is tied to lietime employment historynot to tenure or hours

    specic employerworkers who hold multiple part-time jobs,

    or small businesses, or who have changed employers within th

    previous year are not penalized, provided they have sufcient l

    orce attachment. Eligibility requirements and more inormatio

    the workers who would be covered under Social Security Cares

    explained in greater detail in the Center or American Progress

    titled Comprehensive Paid Family and Medical Leave or Today

    Families and Workplaces: Crating a Paid Leave System that Bu

    the Experience o Existing Federal and State Programs.61

    There are several ways that the program could potentially be u

    outlined in Helping Breadwinners When It Cant Wait and Bu

    Up, not Tearing It Down. For the purposes o the reports in this

    we assume the unding mechanism would mirror the Caliornia

    New Jersey systems. In Caliornia payroll taxes toward the long

    ing disability insurance trust und increased to 1.2 percent o p

    using the state disability insurance wage base (this und covers

    state disability insurance and paid amily leave), and in New Je

    a new trust und was established equal to 0.12 percent o payr

    using the Social Security wage base.

    Social Security Cares would include language to prevent retalia

    and discrimination against leave-takers, but unlike the Family a

    Medical Leave Act, it would not require job protection. Social S

    Cares leave is intended to be taken in conjunction with Family

    Medical Leave Act leave or those workers who qualiy. Extendi

    those protections to part-time workers, workers in small busine

    and domestic partners would need to be addressed through se

    legislative action.

    Social Security Cares unpacked

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    How Social Security Cares supports employment

    Overall, paid amily and medical leave will increase he employmen rae o care-

    givers, mosly by increasing he likelihood o reurning o ones same employer

    aer needing a labor break o care or amily. We know his rom a variey o sud-

    ies done in he Unied Saes and abroad, which ogeher indicae a srong correla-ion beween paid amily and medical leave and coninued employmen.

    Mos o he research on how paid amily and medical leave aecs employmen

    sabiliy examines maerniy leave, and mos is non-U.S. based because he Unied

    Saes does no have a naional paid amily and medical leave program. Tere is

    no currenly a body o research ha can ully explain why caregivers are more

    likely o reurn o heir same employer aer aking leave, bu i is clear ha having

    paid leave is highly correlaed wih doing so. Tis is likely because paid leave:

    Fosers a workplace culure where i is made clear ha caregivers also belong inpaid employmen

    Provides a naural endpoin a which caregivers can plan o reurn o work Combines wih job proecion o aciliae re-enry ino he workplace

    In general, in he Unied Saes nearly 80 percen o mohers wih access o eiher

    paid or unpaid maerniy leave reurn o heir previous job posparum, compared

    o only 62.9 percen o mohers wihou access. Women wih access o leave are

    almos 70 percen more likely o come back o work hree monhs o one year aer

    having a child. So while in he shor erm access o maerniy leave keeps moh-

    ers ou o he workorce, in he long run i makes hem signicanly more likely o

    reurnand o reurn o heir previous employer.62

    Research nds ha paid leave is also associaed wih greaer raes o employmen

    years laer. Te eecs o paid maerniy leave are apparen years laer, as hose

    women who had access o paid maerniy leave were more likely o be employed

    laer in lie. Tereore, i every woman in America had access o paid leave when

    she had a baby, esimaes are ha his would increase employmen by approxi-

    maely 40,000 new mohers each year.63 Women who qui heir jobs upon he

    birh o a child are less likely o reurn o work, compared o hose who did noqui, and mohers who received pay during maerniy leave or heir rs child had

    a higher probabiliy o being employed years laer.64 (see Figure 2)

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    State experience

    Social Securiy Cares builds upon he successul programs already in place in

    Caliornia and New Jersey and is similar o, hough more modes han, paid leave

    programs ha have boosed employmen raes in oher indus-

    rialized democracies. Caliornia and New Jersey have imple-mened saewide paid amily and medical leave. (Washingon

    sae also passed a paid amily and medical leave program in

    2007, bu i will no be implemened unil a leas 2015.)

    Caliornias Paid Family Leave Insurance program was passed

    in 2002 and became available o workers in July 2004. Paid

    leave is adminisered hrough he sae disabiliy insurance

    program and is unded hrough payroll axes on employees.

    Eligible workers in Caliornia who ake eiher disabiliy or

    amily leave receive 55 percen o heir regular payup o amaximum o $928 per week. Family leave can be aken or up

    o six weeks o bond wih a new child or o care or a seriously

    ill amily member, while personal disabiliy leave can be aken

    or up o 52 weeks.65 In order o qualiy he worker mus have

    earned a minimum o $300 in our o he las ve quarers.

    Because o his low hreshold, many Caliornia workers are

    eligible, hough low-wage or par-ime workers paymens are

    lower in oal dollar amouns.

    New Jerseys Family Leave Insurance program became eec-

    ive July 1, 2009, and is closely modeled on he Caliornia sysem wih a ew dier-

    ences. Eligibiliy requiremens are higher: In order o quali y a worker mus have

    earned a minimum o $7,300 in he pas 12 monhs. In 2011 recipiens would

    receive wo-hirds o heir regular pay wih a maximum o $559 per week.66 As

    in Caliornia, workers may ake up o six weeks o paid leave per year in order o

    bond wih a new child or care or a amily member, bu personal disabiliy leave is

    only available or 26 weeks. In boh cases he leave does no provide job proec-

    ionworkers mus separaely le or ederal unpaid leave in order o guaranee

    coninued employmen a he end o heir leave.

    While here is no research ou ye on he New Jersey program, research on

    Caliornias Paid Family Leave Insurance program shows ha having access o

    leave increases job reenion. More han 95 percen o workers who ook amily

    FIGURE 2

    Uneven emale work patterns

    Probability mothers are employed up to 16 y

    ater the birth o irst child

    Source: Boushey, 2008

    Yes No

    70%

    75%

    80%

    85%

    90%

    100%

    95%

    Recieved paidmaternity leave

    95.1

    89.7

    Quit whenhad first child

    79.8

    95.5

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    leave in Caliornia reurned o work, and more han our-hs reurned o he

    same employer.67 A key nding is ha he eecs in erms o reenion are paricu-

    larly srong or he groups o workers leas likely o have paid leave prior o he

    laws implemenaion. Workers in jobs ha pay less han $20 per hour who ook

    leave when hey needed i were signicanly more likely o reurn o he same

    employer han hose who did no ake leave: Eighy-hree percen wen back ohe same job hey had held beore.68

    International experience

    Te Unied Saes has a high maernal employmen rae, bu i is no as high as

    oher developed member naions o he Organisaion or Economic Co-operaion

    and Developmen. Te lack o paid amily and medical leave in he Unied Saes,

    along wih he lack o oher work-amily reconciliaion policies, is a key acor.

    In he Unied Saes mohers are less likely o work han oher women, bu his

    is no he case elsewhere. U.S. women wih an inan a home are 22 percen less

    likely o be engaged in paid work, and hose wih a preschooler are 15 percen

    less likely o work han similar U.S. women wihou children. In counries such as

    Belgium, Denmark, Finland, France, and Swedenwhere here are comprehen-

    sive and generous maerniy-leave policiesmohers wih young children are no

    more likely o be ou o he labor orce han heir childless counerpars.69

    Inernaional research consisenly shows ha paid amily and medical leave

    increases employee reenion. Research conduced in Canada aer maerniy and

    parenal leave allowances were expanded in 2001 o a maximum o 52 weeks o

    job-proeced leave ound ha all provincial programs increased he likelihood

    ha women would reurn o work aer he birh o a child. Job-proeced paid

    leave increases employmen raes or parens o boh genders whose younges

    child is under he age o 2.70 Paid leave longer han 17 o 18 weeksranging rom

    29 o 52 weeks depending on he provincewere associaed wih higher raes o

    job coninuiy, as more women reurned o work who would have oherwise le

    he labor orce o say home and also resuled in higher raes o women reurning

    o ull-ime, raher han par-ime, employmen.71

    Tis las poin is paricularly salien as womens ull-ime, raher han par-ime,

    employmen boh increases amilies economic securiy and resuls in higher sae

    and ederal ax revenues. Oher sudies in Canada have ound similar resulsjob-

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    19 cn an pg |t e p F l n ml Lv

    Social Security Cares will increase take-up of family leave among men

    Income replacemen, even when i is less han ones normal salary, encourages

    men o ake amily and medical leave and makes i more nancially easible o do

    so.78

    Beween 2004 and 2010 he number o men in Caliornia aking amily leaveseadily increased, wih he larges gains seen in hose aking leave o bond wih a

    new child. Mens share o caregiving claims increased rom 30 percen in 2004 o

    32 percen in 2010, while mens baby bonding claims jumped rom 17 percen in

    2004 o 26 percen in 2010.79

    FIGURE 3

    Americas amilies losing out

    Full-time equivalent (FTE) paid and unpaid weeks o parental leave or two-parent amilies in selected OECD countries

    Sources: Ray, Rebecca, Janet C. Gornick, anJohn Schmitt. 2008. Parental Leave Policie21 Countries: Assessing Generosity and Ge

    Equality. Washington, DC: Center for EconPolicy Research, and Commonwealth of A2009. Australias Paid Parental Leave Sche

    Supporting Working Australian Families. CAustralian Government.

    FTE paid leave Unpaid leave

    0 50 100 150 200 250 300 35

    Switzerland 11 3United States 24

    Portugal 18 13

    Netherlands 16 26

    Belgium 18 25

    Finland 32 16

    Denmark 20 32

    Canada 28 25

    New Zealand 14 40

    Japan 26 32

    Greece 34 26

    Australia 9 52

    Italy 25 44

    Ireland 21 49

    United Kingdom 13 67

    Austria 16 100

    Norway 44 106

    Sweden 47 116

    Germany 47 123

    Spain 18 294

    France 22 296

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    Norway experienced he same patern aer i inroduced a paerniy quoa in

    1993 wih our weeks o nonranserable paid parenal leave available only o men.

    Beore 1993 ewer han 3 percen o ahers ook paerniy leave, bu by 2005 he

    raes had skyrockeed, wih more han 70 percen o ahers aking amily leave

    aer he birh o a child.80 Sweden implemened a similar daddy monh in 1995,

    and Swedish ahers parenal leave-aking has since increased by 50 percen.81

    Greaer ake-up among men would help o reduce he sigma o women aking

    leave and would help o close he gap in lieime employmen hisory beween

    men and women. Addiionally, i men become more involved in unpaid care work

    in he home i would boh reduce he burden on heir emale parners, and i

    would inuence he culural landscape in such a way ha we would anicipae less

    employer discriminaion as work-amily balance would become ramed less as a

    womens issue and more as a human issue.

    Addressing pressing need to change culture

    In addiion o providing nancial assisance and he abiliy o ake ime away rom

    work wihou he risk o losing ones job, paid amily and medical leave sends a sig-

    nal ha caregivers belong in he workplace raher han solely a home and ou o

    he paid labor orce. A naional paid leave policy would be nesed wihin a broader

    insiuional and culural conex ha demonsraes he mos valuable ypes o

    work and who should be doing hem.

    Oering paid amily and medical leave places caregiving in his caegory o impor-

    an and valuable work and shows i can and should be combined wih ormal

    labor orce paricipaion. Gender-neural policies such as he one proposed here

    also send messages abou who should be providing care wihin he home. When

    men have he opporuniy and are encouraged o ake paid leave, i can help in

    reducing gender sereoypes and he sigma around aking ime away rom work o

    care or ones amily.

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    Conclusion

    The benefits of Social Security Cares for employment stabil ity

    Te posiive impacs o Social Securiy Cares would be ar-reaching and would

    reec our changing imes. Families are no longer organized he same way hey

    were in he 1950s, ye our workplace policies have no kep pace wih hese shis.

    In addiion o promoing greaer gender equiy and reducing he gender wage gap,

    paid amily and medical leave will also increase he shor-erm economic securiy

    o amilies, as well as he long-erm reiremen securiy o women and caregivers.

    Social Securiy Cares would improve gender equiy by reducing he sigma around

    aking amily leave, by encouraging more men o ake leave, and by bridging he

    gap beween mens and womens lieime work hisories. Greaer employmen

    among caregivers over ime will resul in longer lieime employmen hisories by

    allowing workers o reurn o employmen aer aking leaveeven i i reduces

    paricipaion in he shor erm. Reducing gaps in labor orce paricipaion or

    caregivers will help o reduce he wage gap beween hose workers who provide

    unpaid care work and hose who do no.

    Social Securiy Cares is inended o increase mens leave-aking in wo ways. Firs,

    i will provide paid leave, which men are more likely o ake. Second, similar o he

    Family and Medical Leave Ac, he leave provided hrough Social Securiy Cares

    would be gender neural. Eligibiliy is ied o he worker, no he child or amily

    member. Te same amoun o leave ime is available o boh parens, and is non-

    ranserable, unlike in some oher counries where women end up aking he bulk o

    parenal leave. Oering paid leave will allow men o ake ime away rom work a he

    same ime as heir emale parners, raher han poenially having o wai unil aer

    she has reurned o work in order o avoid a oal loss o amily income.82

    Because men oen canno aord o ake unpaid leave under he Family and

    Medical Leave Ac unil heir parners have exhaused heir leave and because

    biology necessiaes women aking leave in he immediae prebirh and posbirh

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    ime periods, women end o acquire more child care skills and are more likely o

    be esablished as he primary caregiver early on. Social Securiy Cares will help

    o miigae his, allowing men o be more involved in caregivinga desire ha is

    consisenly expressed by men in research on aherhood.83

    Whas more, because Social Securiy Cares would be linked o lieime employ-men, i would provide a greaer incenive no only o reurn o work bu also o

    work a greaer number o hours i one anicipaes he possibiliy o needing o

    ake leave again in he uure. A workers behavior aer reurning o work is oen

    jus as imporan as he lengh o ime hey ake o. When employees reurn o

    work bu reduce heir hours, i no only impacs heir curren wages bu also heir

    chances or advancemen and uure career prospecs. Social Securiy Cares helps

    correc ha problem.

    Finally, greaer employmen among caregivers will increase he ax base or Social

    Securiy and conribue o is overall solvency. While here are concerns abouhe long-erm economic soundness o Social Securiy, he real problem is due o

    increases in healh care coss raher han presen bene levels.

    Imporanly, hough, encouraging greaer workorce paricipaion among caregiv-

    ers, paricularly women, would no only resul in a greaer immediae cash inux

    ino he Social Securiy sysem bu also would provide greaer nancial sabiliy

    or caregivers once hey reach reiremen age.

    As his paper demonsraes, he resuls rom previous research are clear: Mohers

    who have access o paid leave are signicanly more likely o reurn o work aer he

    birh or adopion o a child. Tis is only a parial esimae or he poenial benes

    o he proposed programwe would expec addiional increased labor orce atach-

    men rom workers wih care responsibiliies oher han hose or a new child or

    hose associaed wih aking leave due o ones own serious bu emporary illness.

    Tese addiional workers would coninue conribuing o he Social Securiy sysem

    when hey oherwise would have sopped working wihou access o paid leave.

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    About the authors

    Heather Boushey is Senior Economis a he Cener or American Progress. Her

    research ocuses on employmen, social policy, and amily economic well-being.

    Much o her curren work ocuses on he Grea Recessions impac on workers and

    heir amilies, as well as policies o promoe job creaion. She coedied Te ShriverReport: A Womans Nation Changes Everything(Simon & Schuser e-book, 2009)

    and was a lead auhor o Bridging he Gaps, a 10-sae sudy abou how low- and

    moderae-income working amilies are le ou o work suppor programs. Her

    research has been published in academic journals and has been covered widely in

    he media, including regular appearances on PBS NewsHour and in Te New York

    imes, where she was called one o he mos vibran voices in he eld. She also

    spearheaded a successul campaign o save he Census Bureaus Survey o Income

    and Program Paricipaion rom devasaing budge cus. Boushey received her

    docorae in economics rom he New School or Social Research and her bach-

    elors rom Hampshire College.

    Sarah Jane Glynn is a Policy Analys a he Cener or American Progress. Prior o

    coming o CAP, she worked as an adjunc aculy member a Vanderbil Universiy

    and Belmon Universiy in Nashville, ennessee. She also served on he edio-

    rial sa or Work and Occupations, an inerdisciplinary scholarly journal. Glynn

    will receive her docorae in sociology in he summer o 2012 rom Vanderbil

    Universiy, where she also go her masers. She holds a bachelors in womens

    sudies rom he Universiy o Caliornia, Los Angeles.

    Acknowledgements

    Te auhors rs sincerely wish o hank Ann OLeary or generously sharing her

    good ideas and inpu, in addiion o her reviews and edis, hroughou he enirey

    o his projec. Te auhors also wish o hank Amanda Koppelman Milsein,

    Danielle Lazarowiz, and Mat Separa or heir research assisance. Tanks mus

    also go o Randy Albelda, Jane Waldogel, and Vicki Shabo or heir review, edis,

    and suggesions or his repor. Finally, hank you o he Rockeeller Foundaion

    or heir generous suppor o his work.

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    Endnotes

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    32 Nevada Department o Human Resources v. Hibbs, 538Us 721 (2003).

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    26 cn an pg |t e p F l n ml Lv

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    83 hngn, dun, n hub, t Nw d: c-ng, c n cn.

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