This paper was presented during a Seminar on Parental Leave organized by Fondazzjoni IDEAT for the social partners on Saturday, 31st July, 2010 at the Labour Party Headquarters, Hamrun. The other speaker was Mr. Joe Tanti from the Malta Business Bureau. The seminar was chaired by Mr. Joe Gerada.
THE ECONOMIC IMPACT OF PARENTAL LEAVE
AN EVALUATION OF THE BENEFITS AND THE COSTS
A study by PROF EDWARD SCICLUNA MEP
The paper is intended to rebalance the stated costs and benefits assumed by the MBB report by referring to some of the extensive scientific studies carried out in countries around the world over the last 30 years, and the projected outcomes for Malta.
The benefits are shown to be quite significant, while the costs are much lower, by about half the sum estimated in the MBB report. The sum is further reduced when corrects for the mis-placed assumption that considers births can apportioned by equal probabilities for active and inactive young women.
It is not the intention of the paper to quibble with calculations based on assumptions most of which can be ascertained by a properly carried out Labour Force survey, which could measure the actual number of women on maternity leave, their level of take up and the wages they receive during their leave. At this stage one can understand the precautionary approach taken by the employers in view that at present it is they who are shouldering the cost.
Prof Scicluna strongly recommends that such a special Labour force survey on females who have experienced motherhood and who have adopted over the last year be carried out as a matter of importance in view of its economic and social policy implications. However, as of now, if one were to take the MBB estimates as a valid starting point, then the probable aggregate cost of a 6 week extension, for paid maternity leave and a 2 week extension as paid paternal leave, would be found in the region of €5 million.
At present the full cost of the financial burden for paying wages to new mothers for a 13 to 14 week period falls on the employer. This is most unfair to both employer and employee for two reasons. In the former case certain jobs require a higher proportion of females than the national average. The employers in these sectors are hit unduly harder than others. For the young female persons seeking work this risk is carried with them and may play a role in their being chosen, and the wage rate they are offered.
It is very strange that while financial risks related to pensions, sickness leave, health services are spread over the whole working population through funded insurance schemes or similar, no such scheme exist in Malta to finance the “risk” or probability of having a child. Any diffusion of this social obligation, together with the introduction of paid paternal leave
helps significantly in reducing the actual or potential discrimination against the recruitment of young women of child-bearing age.
Prof Scicluna’s paper has shown in a convincing way that any financial outlays incurred for this purpose can have a considerable return to the Maltese economy, including the business sector. Besides the proven positive benefits on infant and maternal health, the implications for jump-starting Malta’s record low female labour force participation rate (FLFPR) are indeed noteworthy. Malta has the opportunity to see a significant jump in its current abysmally-low (FLFPR) of prime-age women (25-54) by up to a maximum 9 percentage points.
The economic returns of such an increase in Malta labour force participation rate have not been evaluated in this short paper but Prof Scicluna contends that the economic effects are known to be staggering. Malta’s productive capacity and its fiscal possibilities are clearly curtailed by Malta’s low active-to-inactive population ratio.
Prof Scicluna’s own conclusion is that given the Maltese economic aspirations, the cost is well worth undertaking. In fact, more than that, it should be seen as money well invested.
ENDS
Din il-Paper ġiet ippreżentata waqt Seminar li trattat il-Parental Leave organizzat minn Fondazzjoni IDEAT għall-Imsieħba Soċjali nhar is-Sibt, 31 ta’ Lulju, 2010 fiċ-Ċentru Nazzjonali Laburista, il-Ħamrun. Kelliem ieħor kien is-Sur Joe Tanti tal-Malta Business Bureau. Is-Seminar ġie iċċerjat mis-Sur Joe Gerada.
L-Impatt Ekonomiku tal-Parental Leave:
Evalwazzjoni tal-Benefiċċji u l-Ispiża
Studju mill-Prof Edward Scicluna MEP
Dan l-istudju huwa maħsub biex jirribilanċja dak li assuma rapport tal-Malta Business Bureau (MBB) dwar l-ispiża u l-benefiċċji tal-parental leave u li pproġetta dak li jista’ jirriżulta f’Malta. L-istudju ta’ Prof Scicluna huwa bażat fuq kwantita ta’ studji xjentifiċi li saru tul dawn l-aħħar 30 sena f’diversi pajjiżi madwar id-dinja.
Prof Scicluna juri li l-benefiċċji huma sinifikanti, filwaqt li l-ispiża hija ferm inqas ta’ dak stmat mir-rapport tal-MBB. Tant li huwa kkalkulat li din l-ispiża tkun madwar in-nofs ta’ dak li jgħid ir-Rapport tal-MBB. L-ammont ikompli jonqos meta jkunu meqjusin assunzjonijiet barra minn lokhom meta jikkunsidraw li sew għan-nisa li jaħdmu u oħrajn li ma jaħdmux il-probabbiltajiet ta’ twelid huma l-istess.
L-istudju tal-Professur Scicluna m’għandux l-intenzjoni li joqgħod joġġeżżjona għal kalkulazzjonijiet bażati fuq assunzjonijiet li ħafna minnhom jistgħu jkunu aċċertati permezz ta’ survey adekwat ta’ dawk li jaħdmu (Labour Force). Survey bħal dan jagħti riżultat attwali ta’ kemm nisa jkunu fuq leave tal-maternita, kemm jieħdu leave u kemm salarji jirċievu waqt li jkunu bil-leave. F’dan l-istadju wieħed jifhem l-istimi ta’ dawk li jieħdu dawk li jħaddmu huma bbażati fuq prinċipji ta’ prekawzjoni, meqjus il-fatt li fil-preżent huwa huma li jridu jġorru l-piż tal-ispiża.
Prof Scicluna jirrakkomanda bis-sħieħ li dan is-Survey għandu isir fuq kampjun ta’ nisa li kellhomm tarbija jew li adottaw tarbija tul is-sena li għaddiet fid-dawl tal-implikazzjonijiet ekonomiċi u soċjali. Madankollu, fil-preżent, jekk wieħed kellu jieħu l-kalkoli tal-MBB bħala punt validu ta’ tluq, il-probabbilta hija li l-ispiża globali għal żjieda ta’ sitt ġimghat imħallsa ta’leave tal-maternita u ż-żjieda ta’ ġimgħatejn imħallsa għal leave paternali tkun tlaħħaq għal madwar €5 miljuni.
Fil-preżent l-ispiża kollha tal-pagi ta’ bejn 13 u 14-il ġimgħa għal nisa li jaħdmu u li joħorġu tqal jġorrha kollha min iħaddem. Dan huwa inġust, għal żewġ raġunijiet, kemm għal min iħaddem kif ukoll għall- ħaddiem. Fil-każ ta’ min iħaddem hemm xogħol li jirrekjedi aktar ħaddiema nisa mill-medja nazzjonali. F’dan is-settur, min iħaddem jintlaqat b’mod sproporzjonat u aktar minn ħaddiehor. Għal nisa żgħażagħ li jkunu qegħdin ifittxu x-xogħol ikunu qed jġorru magħhom dan ir-riskju li jista’ jilgħab parti meta jiġu biex jingħażlu jekk jingħatawx xogħol jew le kif ukoll fil-pagi li jkunu offruti.
Huwa stramb ħafna li filwaqt li riskji finanzjarji relatati ma’ pensjonijiet, leave għal waqt il-mard, servizzi ta’ saħħa huma mifruxa fuq il-popolazzjoni kollha li taħdem permezz ta’ diversi skemi ta’ assigurazzjoni, ma teżisti ebda skema f’Malta li tiffinanzja “ir-riskju” jew il-probabbilta li mara li taħdem ikollha tarbija. Kieku obbligazzjoni soċjali bħal din kellha tinfirex u magħha ikun introdott leave paternali mħallas, tkun ta’ għajnuna kbira biex tonqos id-diskriminazzjoni attwali u potenzjali fil-konfront ta’ ħaddiema nisa f’eta li jistgħu jkollhom tarbija.
L-istudju ta’ Prof Scicluna juri b’mod konvinċenti li kull finanzjament għal dan il-għan jista’ jfisser rendiment konsiderevoli lill-ekonmija Maltija, inkluż lis-settur tan-negozju. Apparti l-benfiċċji pożittivi, u diġa’ pruvati, fuq is-saħħa tal-omnm u tat-tarbija, huwa mill-aktar notevoli l-effett li jista’ jkun hemm biex ninqalgħu mir-rekord baxx li għandna fejn jirrigwarda parteċipazzjoni femminili fid-dinja tax-xogħol. Malta għandha l-opportunita li tara żjieda fil-perċentwal ta’ nisa bejn (25-54) li jaħdmu sa massimu ta’ disa’ punti perċentwali.
Ir-riżultati ekonomiċi għal Malta minn żjieda bħal din fin-numru ta’ ħaddiema nisa ma ġewx evalwati f’dan l-istudju, imma l-Prof Scicluna innifsu jikkontendi li l-effetti ekonomiċi huma sinifikanti. Huwa evidenti li l-kapaċita produttiva tal-pajjiż u l-possibiltajiet fiskali huma mxekkla mill-proporzjon baxx ta’ popolazzjoni attiva ma’ dik inattiva.
Il-konklużjonijiet tal-Prof Scicluna huma li meqjusin l-aspirazzjonijiet ekonomiċi ta’ Malta, l-ispiża hija waħda ta’ min jidħol għaliha. Aktar minn hekk, għandha titqies bħala investiment tajjeb.