The decision to return after a baby to work - and to pay for child care - is difficult. American parents can now another financial figure hit his calculations added: lost their jobs could cost a family of three times the annual salary of one parent each year.
They lack a regular salary, but also the opportunity costs, including lost wages growth and pension assets, according to a report released Tuesday by the Center for American Progress.
"Given the importance of the career of the parents to ensure the financial stability of their children, is a sign that we do not believe that to the child care as an economic issue when parents decide without leaving good tools or not see how it affects their income, "said Michael Madowitz, co-author of the report and an economist at the Institute based research in Washington liberal.
Unlike other major life decisions, such as a house or pension planning to buy, financial factors to apply for childcare leave fairly well understood, Madowitz said.
The actual costs are determined by the fact that many parents start their careers, which means that even the slightest interruption of revenue can have a significant impact in the decades that followed the workforce.
To illustrate how quickly the losses can add up, the analysts of the CAP have developed a chart that allows users to input factors such as gender, age, salary and time scheduled job allows work. lose with 26 hypothetical employee with a salary of $ 44,000 per year would thus take on lifetime earnings of $ 706,778 5 years in order to care for a child.
Approximately 65 percent of children under 5 years have all concubinage parents in the workforce, according to the Annie E. Casey Foundation. With head care 14 percent of the average income of a married couple in some of the most populous states will cost in deciding whether or not to work outside the home even more complex.
The calculation is much more tense for those who have a lot of pillows small: The below the poverty line spend 36 percent on average of the annual income for child care, compared to 9 percent of all families with children under 5 years, according to calculations separate PAC with data from the Census Bureau.
Rising costs of contracted child care and lack of policies favorable work for the family in the US They were, because instead of the number of women in the workforce made largely to the decline in charge choose to stay at home to care for their children. The participation of women of working age fell to 56.7 per cent from a peak of 60.3 percent 16 years ago.
Countries that support greater flexibility in the policy of the workforce - including paid leave for parents, child care and high quality care for older people - generally have higher employment rates among women, according to a report on the US economy released last week by the Organisation for economic co-operation and development week.
"The lack of programs to pay family holiday in the United States, combined with the high cost of child care in the United States, is an important reason why the participation and women after the birth of a child is back to work still a struggle for many in low and middle income families "Aparna Mathur, resident scholar at the economic policy at the American Enterprise Institute, based in Washington, said in an e-mail. "It is not only for women, but it is a matter of economic importance."
Read the hidden costs of US bloomberg.com parents stay at home
- Personal Finance - Lifestyle
- Center for American Progress
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