When I write about columns in the New York Times, I’m normally pointing out silly examples of bias or exposing absurd mistakes (with Paul Krugman deserving his own special category for sloppiness, as seen here, here, here, here, here, here, here, here, here, here, here, and here).
But every so often, there’s an insightful piece that is worth sharing rather than worth mocking. And that’s the case with a column by Claire Cain Miller on the unintended negative consequences of policies that ostensibly are supposed to help women but actually hurt them.
In Chile, a law requires employers to provide working mothers with child care. One result? Women are paid less. In Spain, a policy to give parents of young children the right to work part-time has led to a decline in full-time, stable jobs available to all women — even those who are not mothers. Elsewhere in Europe, generous maternity leaves have meant that women are much less likely than men to become managers or achieve other high-powered positions at work.
Why all these bad results, which seemingly are contrary to the intentions of lawmakers?
…these policies often have unintended consequences. They can end up discouraging employers from hiring women in the first place, because they fear women will leave for long periods or use expensive benefits.
Amen. You don’t make workers more attractive to employers with laws and regulations that increase the real and/or potential costs of employing those workers.
The column cites some research on the impact of the Family and Medical Leave Act in the United States. As well as the harmful effect of similar laws in other nations.
Women are 5 percent more likely to remain employed but 8 percent less likely to get promotions than they were before it became law, according to an unpublished new study by Mallika Thomas, who will be an assistant professor of economics at Cornell University. …These findings are consistent with previous research by Francine Blau and Lawrence Kahn, economists at Cornell. In a study of 22 countries, they found that generous family-friendly policies like long maternity leaves and part-time work protections in Europe made it possible for more women to work — but that they were more likely to be in dead-end jobs and less likely to be managers.
The bottom line is that government intervention is not a recipe for helping people, especially once you factor in the effect of unintended consequences.
Speaking of which, I made the same argument when looking at a government proposal to help those struggling with long-run unemployment.
All of which tells us that you must have asked a very silly question if the answer is more government.
P.S. My favorite articles and columns from the New York Times are the ones that accidentally show the superiority of small government and free markets.
P.P.S. Since I wrote the other day about the wisdom of allowing successful foreigners to emigrate to the United States, here’s a related graphic.
Maybe I’m missing something, but doesn’t this suggest we should welcome more Indians to America?
After all, the economy isn’t a fixed pie and sensible folks understand that the rest of us benefit when there are more rich and successful people.
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Following up on the jobs thought, we tell our children to go to college in order to get a good job, but maybe we ought to be telling our children the real objective is to create. For the millions of students pouring out of college each year, who will create the job that they intend to consume? Shouldn’t we be encouraging our children to be one of the few waiting at the head of commencement line with offers of employment, instead of one of the many in that line?
And yet,
The feministic hate-baiters are still clamoring for MORE!
Now, the out-sourcing of labor has even more reason/excuse to leave the country. Just think on what happened after NAFTA became “business as usual” in these united states. Now look at what all these “trade agreements” under the guise of the North American Union program will accomplish for us all.
Government over-regulation has succeeded in accomplishing one major feat: Handing the control of our various industries over to the biggest of the big. These of the biggest are the ones who have clamored the loudest in MORE government regulations that effectively cripple the smaller businesses. Seems to me that the only “jobs” government has done well to “create”, are the ones that cost us even MORE, in the nature of not only money, but also lost job and career opportunities, and lost productivity – because government is least productive as far as durable goods (and services).
So long as we have MORE Keynesian principles becoming MORE “laws”, we are all but guaranteed MORE mass poverty and MORE dependence on the remaining few in industry, and on big-government.
Joshua, Your 2nd paragraph would be spot on – IF the immigrants coming into the U.S. were workers only. In that case, yes, the supply of workers would go up and would create a downward force on wage rates. But many of these immigrants, particularly those from India, quickly become employers – who create jobs instead of consuming them which increases the demand for workers.
In moderation, sure–let’s bring over more successful immigrants rather than less successful ones. Although, I can’t help but think that Larry Page has said, out of both sides of his mouth at different venues, that it only makes sense to increase our H1B1 visas so he can get more of the labor that he wants at the rate that he wants it, while also saying that for every position Google has open he has over 1,000 applicants here in America.
The most basic function of economics, the supply and demand curve, certainly suggests that as you increase the supply of labor by importing more workers, that it will be even harder for the labor already here to get jobs at the rates that they desire. You’ve got to do a lot more to convince anyone that it’s good for AMERICANS to import more successful foreigners into our country to further bloat our already bloated labor pool.
In America, women are a systemically and structurally underutilized resource of corporate productivity, competitiveness and prosperity.
However, systemic gender bias prevents utilization of this resource.
But what is most amazing is that …
… Amongst the seven billion people of this world, nobody, I mean NOBODY, else has figured out this underutilization and experimented with its reversal. Hence, through serendipitous coincidence and systemic worldwide anti-feminine bias, American companies remain the most competitive worldwide in spite of their suboptimal self-destructive sexist choices.
… or so goes the progressive narrative.
Now, once their progressive affirmative action activist proposals get implemented, and companies, employees and shareholders (ie. people like me and you who invest their delayed gratification savings in mutual funds etc.) get burdened with supplying benefits to non-working mothers, then Americans WILL find out that there is indeed a rest of the world with seven billion people.
Somewhere, some of these seven billion souls will pound their marginally less efficient American competitors into oblivion. To think that NOBODY in the world will ever take advantage of this is delusional at best.
This is because reality is quite non-linear. Small differences in productivity and competitiveness have huge consequences.
Remember Blackberry? Did they employ dunces? No, most of them were way above average people. Making marvelous devices that most of us do not have the brains to conceive, develop, take to market. What total aggregate advantage did Apple have over the Blackberry folks? Perhaps just a few percentage points.
Well, it was enough … and Blackberry is now firmly in the death spiral of extinction. The employees, managers, shareholders, men, women and mothers of Blackberry are all going down into extinction.
Ever wondered why Nokia succumbed to the competition? Was it perhaps the few extra percentage of weight from the more generous Finn benefits they offered employees? Could perhaps a few percentage points in competitiveness have changed their fate from death spiral to virtuous ascending cycle?
In the business world, in reality indeed, things are very non-linear. World competitiveness and prosperity depend on very-very narrow margins of advantage. Almost by definition, you are always one small margin away from turning the virtuous cycle of prosperity into the death spiral of decline.
Ironically, most people understand this at the corporate level, but fail to comprehend it at the national level. How else to explain voter-lemming behavior?
But indeed … it’s all water under the bridge.
To a majority of voter-lemmings an economically inefficient redistribution dollar today is worth five perpetually compounding growth dollars in the future. Hence, Americans are well on their way into adopting European style welfare state complacency and demotivation … and thus … failing to match average world growth trendline … will be first approached, then reached, and then perhaps even surpassed by the ascending billions of this planet into average worldwide per capita prosperity.
This will be a long-long-long-long way from where today’s lucky middle class American men and women stand in worldwide prosperity rankings (perhaps in the top 1-5% worldwide) … riding the notoriously and world aberrant selfish wave of Cowboy Capitalism.
So … just wait and see what good times lie ahead… as American economic efficiency converges to European levels.
The voters’ decline will all be of their very own making…
P.S. Oh wait. I just thought of a solution to avoid this fate. Let’s lock all the Indians out…
This is surely a sign that the U.S. has had a pretty successful policy with Indian immigration. But, remember, were India to be located just South of the border, Americans would think of Indians just as they think of Mexicans today. Many (most?) Indians in America are one percenters for their home country in terms of intellect.
The Progressive response will not be to remove the special powers granted to women.
They will emphasize that these outcomes are from self-serving, illegal discrimination by employers just to save a dollar. They will propose tighter controls and more prosecution of businesses. Individual business owners are breaking the law. If they continue, then the State must take over business to make it fair to the people.
In fact, life will be fair only when the state controls it all, in detail. Then, we can work on raising the 90% out of poverty. Progressive Fairness above all.
Motto: Fairness and votes, for as long as it takes.
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