United States Government Accountability Office

GAO Report to Congressional Requesters

WOMEN AND LOWSKILLED WORKERS 

Other Countries’ 

Policies and Practices 

That May Help These 

Workers Enter and 

Remain in the Labor 

Force 

June 2007 

 

GAO-07-817 
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

June 2007

WOMEN AND LOW-SKILLED WORKERS

Other Countries’ Policies and Practices 

That May Help These Workers Enter and 

Remain in the Labor Force 

Highlights of GAO-07-817, a report to 

congressional requesters 

Increasing retirements and 

declining fertility rates, among 

other factors, could affect the labor 

force growth in many developed 

countries. To maintain the size and 

productivity of the labor force, 

many governments and employers 

have introduced strategies to keep 

workers, such as women and lowskilled workers, in the workforce

throughout their working lives. 

Because other countries have also

undertaken efforts to address 

issues similar to those occurring in 

the U.S., GAO was asked to

(1) describe the policies and 

practices implemented in other 

developed countries that may help

women and low-wage/low-skilled 

workers enter and remain in the 

labor force; (2) examine the 

targeted groups’ employment 

following the implementation of

the policies and practices; and 

(3) identify the factors that affect

employees’ use of workplace 

benefits and the resulting

implications. We conducted an 

extensive review of workplace 

flexibility and training strategies in 

a range of developed countries, and 

we conducted site visits to selected 

countries. Our reviews were 

limited to materials that were 

available in English. While we

identified relevant national policies 

in the U.S., we did not determine 

whether other countries’ strategies 

could be implemented here. Labor

provided technical comments, and 

State had no comments on this

report. 

What GAO Recommends

This report contains no 

recommendations. 

Governments and employers have developed a variety of laws, government 

policies, and formal and informal practices, including periods of leave, 

flexible work schedules, child care, and training. Each of the countries we 

reviewed has some form of family leave, such as maternity, paternity, or 

parental leave, that attempts to balance the needs of employers and 

employees, and, often, attempts to help women and low-wage/low-skilled 

workers enter and remain in the workforce. In Denmark, employed women 

with a work history of at least 120 hours in the 13 weeks prior to the leave 

are allowed 18 weeks of paid maternity leave. In addition to family leave for 

parents, countries provide other types of leave, and have established 

workplace flexibility arrangements for workers. U.S. federal law allows for 

unpaid leave under certain circumstances. All of the countries we reviewed, 

including the United States, also subsidize child care for some working 

parents through a variety of means, such as direct benefits to parents for 

child care or tax credits. For example, in Canada, the government provides 

direct financial support of $100 a month per child, to eligible parents for 

each child under 6. Last, governments and employers have a range of 

training and apprenticeship programs to help unemployed people find jobs 

and to help those already in the workforce advance in their careers. 

Although research shows that benefits such as parental leave are associated 

with increased employment, research on training programs is mixed. Leave 

reduces the amount of time that mothers spend out of the labor force. Crossnational studies show that child care—particularly when it is subsidized and 

regulated with quality standards—is positively related to women’s 

employment. Available research on training in some of the countries we 

reviewed shows mixed results in helping the unemployed get jobs. While 

some initiatives have shown promise, some evaluations of specific practices 

have not been conducted. Some country officials said it is difficult to 

attribute effects to a specific policy because the policies are either new or 

because they codified long-standing practices.

While policies do appear to affect workforce participation, many factors can 

affect the uptake of workplace benefits, and employees’ use of these benefits 

can have implications for employers and employees. For example, 

employees’ use of workplace benefits can create management challenges for 

their employers. Additionally, employees are more likely to take family leave

if they feel that their employer is supportive. However, while a Canadian 

province provides 12 days of unpaid leave to deal with emergencies or 

sickness, low-wage workers cannot always afford to take it. Similarly, the 

uptake of available benefits can also have larger implications for an 

employee’s career. Some part-time jobs have no career advancement 

opportunities and limited access to other benefits. Since employers tend to 

target their training to higher-skilled and full-time workers, employees who 

opt to work part-time may have fewer opportunities for on-the-job training 

that could help them advance, according to researchers in the Netherlands. 

www.gao.gov/cgi-bin/getrpt?GAO-07-817.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact Sigurd R. 

Nilsen at (202) 512-7215 or nilsens@gao.gov. 
Contents 

Letter 1

Results in Brief 2

Background 4

Countries Have Various Policies and Practices That May Help 

Some Women and Low-Wage/Low-Skilled Workers Enter and 

Remain in the Labor Force 10 

Although Certain Workplace Policies Are Associated with 

Increased Participation in the Labor Force, in General, Effects 

Are Not Definitive 20 

While Several Factors Affect Uptake, Employees’ Use of 

Workplace Benefits Can Have Implications for Employers and 

Employees 25

Concluding Observations 28 

Appendix I Objectives, Scope and Methodology 30 

Appendix II Selected Labor Market Statistics 32 

Appendix III Maternity, Paternity, and Parental Leave Provisions 34 

Appendix IV GAO Contact and Staff Acknowledgments 41 

Related GAO Products 42 

Page i GAO-07-817 Women and Low-skilled Workers
Tables 

Table 1: Total Fertility Rates, Women’s Labor Market Participation, 

and Part-Time Work 9 

Table 2: Total Federal Tax Revenue as a Percentage of GDP 10 

Table 3: Select Government-Supported Childcare Initiatives 15 

Table 4: Educational Attainment Ages 25-64, 2004 32 

Table 5: Percentage of Full-time Workers Earning Less than TwoThirds of the Median Wage of Full-time Workers 32 

Table 6: Public Expenditures on Training Programs 33 

Table 7: Gross National Income, Per Capita, 2005 33 

Table 8: Maternity Leave 34 

Table 9: Paternity Leave 37 

Table 10: Parental Leave 39 

Abbreviations 

CCDF Child Care and Development Fund 

EC European Commission

EU European Union 

FMLA Family and Medical Leave Act 

HHS Department of Health and Human Services 

ITA individual training account 

OECD Organisation for Economic Co-operation and Development 

SDI State Disability Insurance 

TANF Temporary Aid for Needy Families 

UK United Kingdom 

WIA Workforce Investment Act 

WOTC Work Opportunity Tax Credit 

WtWTC Welfare-to-Work Tax Credit 

This is a work of the U.S. government and is not subject to copyright protection in the 

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reproduce this material separately. 

Page ii GAO-07-817 Women and Low-skilled Workers
United States Government Accountability Office

Washington, DC 20548 

June 14, 2007 

The Honorable Charles Schumer 

Chairman 

The Honorable Carolyn B. Maloney 

Vice-Chair 

Joint Economic Committee 

The Honorable Charles Schumer 

Chairman 

The Honorable Carolyn B. Maloney 

Vice-Chair 

Joint Economic Committee 

The Honorable Jack Reed 

United States Senate 

The Honorable John D. Dingell 

House of Representatives 

Increasing retirements and declining fertility rates, among other factors, 

could affect the labor force growth in many developed countries. To 

maintain the size and productivity of the labor force, many governments 

and employers in developed countries have introduced strategies to keep

workers who face greater challenges in maintaining jobs and incomes, 

such as women and low-wage/low-skilled workers, in the workforce 

throughout their working lives. To help women remain in the labor force 

consistently, many governments and employers have established leave 

policies and flexible working arrangements to assist women in

simultaneously managing responsibilities both inside and outside the 

workplace. At the same time, rapid technological change and global 

competition have limited the employment opportunities for some lowskilled workers. This development has drawn attention to the need for 

investing in education and training to help low-skilled workers find jobs 

and remain in the labor force. 

Increasing retirements and declining fertility rates, among other factors, 

could affect the labor force growth in many developed countries. To 

maintain the size and productivity of the labor force, many governments 

and employers in developed countries have introduced strategies to keep

workers who face greater challenges in maintaining jobs and incomes, 

such as women and low-wage/low-skilled workers, in the workforce 

throughout their working lives. To help women remain in the labor force 

consistently, many governments and employers have established leave 

policies and flexible working arrangements to assist women in

simultaneously managing responsibilities both inside and outside the 

workplace. At the same time, rapid technological change and global 

competition have limited the employment opportunities for some lowskilled workers. This development has drawn attention to the need for 

investing in education and training to help low-skilled workers find jobs 

and remain in the labor force. 

Because the experiences of other countries may provide useful

information for U.S. policymakers, you requested that we examine the 

policies and practices in other developed countries that may attract and 

retain individuals who otherwise might not be in the workforce, or who 

might drop in and out of the labor force more than other groups. 

Specifically, you asked us to (1) describe the policies and practices 

implemented in other developed countries that may help women and lowwage/low-skilled workers enter and remain in the labor force; (2) examine 

the change in the targeted groups’ employment following the 

implementation of the policies and practices; and (3) identify the factors 

Because the experiences of other countries may provide useful

information for U.S. policymakers, you requested that we examine the 

policies and practices in other developed countries that may attract and 

retain individuals who otherwise might not be in the workforce, or who 

might drop in and out of the labor force more than other groups. 

Specifically, you asked us to (1) describe the policies and practices 

implemented in other developed countries that may help women and lowwage/low-skilled workers enter and remain in the labor force; (2) examine 

the change in the targeted groups’ employment following the 

implementation of the policies and practices; and (3) identify the factors 

Page 1 GAO-07-817 Women and Low-skilled Workers
that affect employees’ use of workplace benefits and the resulting 

workplace implications. 

To address these issues, we conducted an extensive literature review of 

workplace flexibility and training strategies in a range of developed 

countries to provide descriptive information about some of their policies

and practices. We conducted site visits or in-depth interviews with various 

officials in four developed countries—Canada, the United Kingdom (UK), 

the Netherlands, and Denmark—selected for the variety of work-family 

and workforce development policies they have adopted, which include a 

range of policies and practices targeted specifically to women and lowwage/low-skilled workers. We interviewed government officials, 

researchers, private employers, and trade associations or unions in each of

the countries about their experiences with such policies and practices. We 

also visited Belgium to meet with officials from several European Union 

(EU) institutions, such as the European Commission and the European 

Foundation for the Improvement of Living and Working Conditions. We 

reviewed four other countries (France, Ireland, New Zealand, and 

Sweden) based on policies and practices they had implemented for our 

target groups. Information about these countries’ policies/practices came 

from extensive literature reviews and discussions with U.S. and foreignbased researchers. 

To provide context, we identified relevant national policies in the United 

States. However, we did not conduct a comprehensive review of similar 

workplace flexibility and training strategies in the United States, nor did 

we seek to determine whether other countries’ strategies could be 

implemented here. Additionally, our review of related laws and regulations 

of the other countries relied on secondary sources of analysis rather than 

independent analysis of foreign laws. Our review of laws and regulations 

was limited by the extent that specific information from secondary 

sources was accessible and written in English. For a more detailed 

explanation of our methodology, see appendix I.

We conducted our work between July 2006 and May 2007 in accordance 

with generally accepted government auditing standards. 

Governments and employers in the countries we studied have developed a 

variety of laws, government policies, and formal and informal practices, 

including periods of leave, flexible work schedules, childcare, and training

for women and low-wage/low-skilled workers. Each of the countries we 

reviewed has some form of paid family leave, such as maternity, paternity,

Results in Brief 

Page 2 GAO-07-817 Women and Low-skilled Workers
or parental leave, that attempts to balance the needs of employers and 

employees and, often, attempts to help women and low-wage/low-skilled 

workers enter and remain in the workforce. For example, in Denmark, 

employed women with a work history of at least 120 hours in the 13 weeks 

prior to the leave are allowed 18 weeks of paid maternity leave. In addition

to family leave for parents, countries provide other types of leave and have 

established workplace flexibility arrangements for workers. U.S. federal 

law allows for up to 12 weeks of unpaid leave for most workers. All of the 

countries also subsidize childcare for some working parents to some 

extent through a variety of means, such as direct benefits to parents for 

childcare and tax credits. For example, in Canada, the government 

provides direct financial support of $100 a month per child, to eligible 

parents for each child under age 6. Last, governments and employers have

a range of training and apprenticeship programs to help unemployed 

people find jobs and to help those already in the workforce advance in 

their careers. For example, Denmark has had a public system in place

since the mid-1960s that allows low-skilled workers to receive free 

education, wage subsidies, and funding for transportation costs. About 

one-half of unskilled workers took part in training courses that were either 

publicly financed or provided privately by employers in the past year, 

according to a Danish researcher. 

Although research shows that the provision of some workplace benefits, 

such as paid family leave, is associated with increased employment, 

research on training programs has shown mixed results, and few 

evaluations of certain policies and practices have been conducted. For 

example, evidence from cross-national studies shows that the availability 

of childcare—particularly when it is subsidized and regulated with quality

standards such as a high staff-to-child ratio—is positively related to 

women’s employment. These and other cross-national studies also indicate 

that paid maternity leave helps women enter and remain in the labor force. 

For example, one study examining paid maternity leave of varying lengths 

of time in several Western European countries, including Denmark, 

France, Ireland, and Sweden, found that such leave may increase women’s 

employment rate by about 3-4 percent. In addition, research demonstrates 

that the provision of leave with job protection reduces the amount of time 

that women spend out of the labor force. Moreover, a study reviewing 

Sweden’s leave policies determined that parental leave set aside for the 

father allows women to shorten their maternity leave and limit career 

disruptions. Research shows mixed results in whether training helps the 

unemployed get jobs. However, nearly all evaluations of Canadian and U.S.

training programs show that the programs helped the unemployed to get 

jobs, according to a literature review by the Canadian government. 

Page 3 GAO-07-817 Women and Low-skilled Workers
Furthermore, it is difficult to attribute effects to a specific policy for a 

variety of reasons, and evaluations may be difficult to conduct. Some 

policies simply codified into law a widely used practice. For example, a 

Dutch official told us that it was very common for Dutch women to choose 

to work part-time even before legislation passed that promoted employees’ 

rights to reduce their working hours. 

Many factors can affect whether employees take full advantage of benefits, 

and use of these benefits can have implications for employers and 

employees. For example, an EU report that examined several of the 

countries we studied found that employees are more likely to take family

leave if they feel that their employer is supportive. In addition, the 

province of Saskatchewan in Canada provides 12 days of unpaid leave per 

year, but low-wage workers cannot always afford to take it, according to a 

Saskatchewan labor official. Employees’ personal experiences can also 

affect their uptake of benefits. For example, employers and governments 

may have to convince employees to take advantage of workplace training, 

because these workers may have had negative experiences with education 

in the past, according to employee representatives from Denmark’s largest 

trade union confederation. Further, some employers may face issues when 

employees do use the available benefits. An employer in Saskatchewan, 

Canada, for example, said that although he was able to hire temporary 

help to cover an employee who was on maternity leave, he faced an 

unexpected staff shortage when the employee decided toward the end of 

her leave not to return to work and the temporary employee had found 

another job. The uptake of available benefits can also have larger 

implications for an employee’s career. Long parental leaves, for example, 

may lead to an actual or perceived deterioration in women’s labor market 

skills, according to an EU report, and can have negative effects on future 

earnings. In addition, since employers tend to target their training to 

higher skilled and full-time workers, employees who opt to work part-time 

may have fewer opportunities for on-the-job training that could help them 

advance, according to researchers in the Netherlands. 

We provided a draft of this report to the Departments of Labor and State 

for their review and comment. The Department of Labor provided 

technical comments, which we have incorporated where appropriate. The 

Department of State did not have comments on this report. 

According to the Department of Labor, in 2005, about 60 percent of U.S. 

women age 16 and older were in the workforce, compared to 46 percent in

1975. Some U.S. employers offer alternative work arrangements to help 

Background 

Page 4 GAO-07-817 Women and Low-skilled Workers
workers manage both work and other life responsibilities.1

 One type of

alternative work arrangement allows workers to reduce their work hours 

from the traditional 40 hours per week, such as with part-time work or job 

sharing.2

 Some arrangements adopted by employers, such as flextime, 

allow employees to begin and end their workday outside the traditional 

9-to-5 work hours. Other arrangements, such as telecommuting from 

home, allow employees to work in an alternative location. Childcare 

facilities are also available at some workplaces to help workers with their 

care giving responsibilities. In addition to benefiting workers, these 

arrangements may also benefit employers by helping them recruit and 

retain workers.3

Federal law establishes minimum levels of unpaid leave for individuals 

under certain circumstances. The Family and Medical Leave Act (FMLA) 

of 1993 enables certain employees to take up to 12 weeks per year of 

unpaid leave upon the birth or adoption of a child, or to care for qualifying 

family members or themselves in the event of a serious health condition 

with the guarantee of a similar job upon return.4

 The law applies to private

companies with 50 or more employees, and all federal, state, and local

government agencies.5

 To be eligible for leave, employees seeking leave 

must have worked for their employer for at least 1 year and for over 

1,250 hours during the last year. 

 1

For a listing of companies that have implemented various workplace flexibility initiatives, 

see the Families and Work Institute, www.familiesandwork.org, and the Great Place to 

Work Institute, www.greatplacetowork.com. 

2

Part-time work schedules allow employees to reduce their work hours from the traditional 

40 hours per week in exchange for a reduced salary and possibly pro rated benefits. Job

sharing—a form of part-time work—allows two employees to share job responsibilities, 

salary, and benefits of one full-time position.

3

Paid leave had been the most costly benefit to employers, but by 2005, the cost of health 

insurance equaled that of paid leave. See GAO, Employee Compensation: Employer 

Spending on Benefits Has Grown Faster than Wages, Due Largely to Rising Costs for

Health Insurance and Retirement Benefits, GAO-06-285 (Washington, D.C.: Feb. 24, 2006). 

4

However, employers are not required to extend this job protection to certain “highly 

compensated employees,” as that term is defined by the Act, 29 U.S.C. § 2614(b). 

5

Governmental agencies do not have to meet the 50-employee test. 

Page 5 GAO-07-817 Women and Low-skilled Workers
Some state laws provide greater family or medical leave rights than the 

federal law.6

 In July 2004, California became the first state in the country 

to offer a comprehensive paid family leave program.7

 The program allows 

workers to receive up to 6 weeks per year of partial wage replacement for 

leave taken to care for a seriously ill family member (child, spouse, parent, 

or domestic partner) or to care for a child within 1 year of birth or 

placement for adoption or foster care. The program, which is administered 

by the State Disability Insurance (SDI) system, is funded entirely by 

employee contributions. The paid family leave law requires a 1-week 

waiting period and applies to all employees who pay into the SDI system, 

regardless of employer size. In May 2007, Washington state enacted paid 

family leave legislation that grants up to 5 weeks of paid leave a year to 

certain employees to care for a newborn or newly adopted child.8

The federal government also provides childcare subsidies for certain lowincome families, and tax breaks for most parents, both to support their 

ability to work and to balance work-family responsibilities. Under 

 6

See National Partnership for Women and Families, Expecting Better: A State-by-State 

Analysis of Parental Leave Programs (Washington, D.C.: 2005), 

www.nationalpartnership.org. 

7

The law was passed in September 2002 and became effective on January 1, 2004, with 

benefits payable for leave commencing on or after July 1, 2004. California’s paid family 

leave is not a form of job protection. The program does not guarantee an employee the

right to take leave, nor does it require an employer to hold an employee’s job open while 

the employee is on leave. Paid leave can be taken all at one time, or intermittently—i.e., in 

hourly, daily, or weekly increments. While the previously existing State Disability 

Insurance benefit provides partial wage replacement to individuals who cannot work

because of their own illness or injury, the new paid family leave benefit provides partial 

wage replacement to individuals who must take time off from work to care for a seriously 

ill family member or new child. Workers who take leave under the paid family leave 

program receive approximately 55 percent of their wages, subject to a statutory cap. Only

workers who pay into the State Disability Insurance system—i.e., almost all private sector 

employees and some public sector employees—are eligible for paid leave. The paid family 

leave law does not require an employee to work a minimum number of hours or days 

before becoming eligible for paid family leave benefits. 

8

Beginning in October 2009, parents of newborn and newly adopted children who have

worked 680 hours or more in the prior year will be able to take up to 5 weeks off work with 

a benefit of $250 per week, pro-rated for part-time workers. While the leave was initially 

funded through an employee-paid payroll tax, the bill that passed establishes a joint

legislative task force to recommend, among other things, a funding source for the program 

before January 1, 2008. The Washington law does provide some employees who take leave 

with job protection. 

Page 6 GAO-07-817 Women and Low-skilled Workers
programs funded by the Child Care and Development Fund (CCDF),9

Temporary Assistance for Needy Families (TANF) and state resources, 

states have the flexibility to serve certain types of low-income families. 

The Head Start program provides comprehensive early childhood 

education and development services to low-income preschool children, on 

a part- or full-day basis. Further, the Child and Dependent Care Tax Credit

allows parents to reduce their tax on their federal income tax return if 

they paid someone to care for a child under age 13 or a qualifying spouse 

or dependent so they could work or look for work.10 The credit is a 

percentage of the amount of work-related child and dependent care 

expenses paid to a care provider. The credit can be up to 35 percent of 

qualifying expenses, depending upon income. 

The federal government also offers workforce development and training 

programs designed to assist low-wage/low-skilled workers in the United 

States. The Workforce Investment Act of 1998 (WIA)11 requires states and 

localities to bring together a number of federally funded employment and 

training services into a single system—the one-stop system. Funded 

through four federal agencies and administered by the U.S. Department of 

Labor, these programs provide services through a statewide network of 

one-stop career centers. Low-skilled workers and dislocated workers can 

choose the training they determine best for themselves, working in 

consultation with a case manager. Additionally, the federal government 

provides incentives for companies to hire low-income workers, public 

assistance recipients, and workers with disabilities. The Work Opportunity 

Tax Credit is a federal tax credit that offers employers tax breaks when 

they hire certain categories of job seekers, including TANF recipients. The 

credit is designed to help people move from welfare to work and gain on-

 9

The Child Care and Development Fund (CCDF) is administered by the Department of

Health and Human Services (HHS) and provides block grants to states, which use the 

grants to subsidize the child care expenses of families with children under age 13, if the 

parents are working or in school and family income is less than 85 percent of the state 

median. Child care services are provided on a sliding fee scale basis, and parents may 

choose to receive assistance through vouchers or certificates, which can be used with a 

provider of the parents’ choice, including religious providers and relatives.

10To qualify, the spouse, children over the age of 13, and other dependents must be 

physically or mentally incapable of self-care and must have the same principal abode as the 

taxpayer for more than one-half of the taxable year. 

11GAO, Workforce Investment Act: Employers Found One-Stops Centers Useful in Hiring 

Low-Skilled Workers; Performance Information Could Help Gauge Employer 

Involvement, GAO-07-167 (Washington, D.C.: December 2006). 

Page 7 GAO-07-817 Women and Low-skilled Workers
the-job experience. Additionally, the Welfare-to-Work Tax Credit (WtWTC) 

is a federal income tax credit that encourages employers to hire long-term 

TANF Assistance recipients. 

Most of the countries we studied are members of the European Union 

(EU);12 as such, they need to take EU laws into account when formulating 

their policies. EU legislation on employment-related issues typically 

provides minimum standards or basic rights for individuals across member 

states. For example, the 1997 directive on equal treatment of part-time 

work mandates that people holding less than full-time jobs be given pro 

rated pay and benefits without discrimination.13 EU directives are 

generally binding in terms of the results to be achieved,14 but an opt-out 

option occasionally allows member states to delay action. According to an 

EU official, the Union also sets targets to be achieved voluntarily at some 

future date. Since 2000, for example, member states have collectively 

agreed to increase the number of women in employment, the number of 

adults in lifelong learning, and the provision of childcare by the end of the 

decade. The EU offers financial support to its member states to help them

succeed in employment goals.15 For example, countries can request money

from the European Social Fund (ESF) for public or private programs that 

improve people’s skills and employability.16

Other differences are relevant to consideration of the workforce 

attachment policies of our study countries. Although U.S. women have 

high levels of educational attainment, their workforce participation, in 

general, is lower than that of the countries we studied. In 2004, the 

educational attainment of women ages 25-64 in the United States, at 

 12These include Denmark, France, Ireland, the Netherlands, Sweden and the UK. The EU is 

an economic and political union established in 1993 by the Maastricht Treaty to expand the 

scope of the European Economic Community and provide for the creation of a European

Central Bank and the adoption of a common currency, the euro. 

13EC Council Directive 97/81/EC; members may choose to make exceptions for workers 

engaged in casual work. 

14 Member states are bound by the objectives laid down by the directives but are left the

choice of how to achieve these objectives. 

15The EU will allocate 0.9 billion euros, or more than $1 billion, for education and training 

in its 2007 budget, a 31 percent increase from 2006. 

16The ESF was created in 1957 and is EU’s main source of support, helping member states 

combat unemployment, prevent people from dropping out of the labor market, and 

promote training. 

Page 8 GAO-07-817 Women and Low-skilled Workers
13.4 years, surpassed that of women in all other study countries (see app.

II, table 4). While a higher education level is generally associated with 

greater likelihood of labor force participation, labor force participation for

U.S. women is lower than that in any of our study countries except Ireland 

and New Zealand. For example, in Denmark, labor force participation was 

85 percent, compared to 75 percent in the United States, and 68 percent in

Ireland. In the Netherlands, a country where 36 percent of all employment 

is part-time, women constitute more than three-quarters of employees 

working less than 30 hours per week (see table 1). 

Table 1: Total Fertility Rates, Women’s Labor Market Participation, and Part-Time Work 

Country

Total 

fertility ratea

Labor force 

participation

rates of women, 

ages 25-54, 2004

Part-time 

employment as 

a proportion of 

total employment 

Women’s share 

of part-time employment

Sweden 1.75 85.3% 13.5% 67.1%

Denmark 1.78 84.9% 18.0% 64.1%

Canada 1.53 81.5% 18.3% 68.6%

France 1.91 80.3% 13.6% 79.1%

The Netherlands 1.73 77.4% 35.7% 76.3%

The UK 1.76 76.8% 23.6% 77.3%

The U.S. 2.05 75.3% 12.8% 68.4%

New Zealand 2.01 75.2% 21.7% 74.8%

Ireland 1.93 67.9% 18.6% 79.1%

Source: OECD Employment Outlook 2006: Boosting Jobs and Income (OECD, 2006) and OECD in Figures, 2006-2007 (OECD, 2006).

a

The fertility rate is defined as the total number of children born per 1,000 women of childbearing age.

Differences in taxation across countries reflect national choices, which are 

largely determined by economic and social priorities. The ratio of total tax 

revenues to gross domestic product (GDP) is a commonly used measure of 

state involvement in national economies. Countries with high tax-to-GDP 

ratios generally pay more from the public budget for services that citizens 

would have to pay for themselves—or do without—in lower-taxed 

countries. In 2004, Sweden had the highest tax revenue as a percentage of

GDP among our study countries, at 50.4 percent. Denmark came next at 

48.8 percent, followed by France at 43.4 percent. The United States had the 

lowest tax-to-GDP ratio in 2004, at 25.5 percent (see table 2).

Page 9 GAO-07-817 Women and Low-skilled Workers
Table 2: Total Federal Tax Revenue as a Percentage of GDP 

Country Percentage of GDP, 2004

Sweden 50.4

Denmarka48.8

Francea 43.4

Netherlands 37.5

United Kingdom 36.0

New Zealand 35.6

Canada 33.5

Ireland 30.1

United States 25.5

Source: OECD Revenue Statistics 2006. 

a

The total tax revenue has been reduced by the amount of the capital transfer that represents 

uncollected taxes. 

Governments and employers in the countries we studied developed a 

variety of laws, government policies, and formal and informal practices, 

including periods of leave, flexible work schedules, childcare, and training. 

Each of the countries we reviewed has some form of paid family leave,

such as maternity, paternity, or parental leave, that attempts to balance the 

needs of employers and employees and, often, attempts to help women 

and low-wage/low-skilled workers enter and remain in the workforce. In 

addition to family leave for parents, countries provide other types of leave,

and have established workplace flexibility arrangements for workers. All 

of the countries also subsidize childcare for some working parents 

through a variety of means, such as direct benefits to parents for childcare 

and tax credits. Last, governments and employers have a range of training 

and apprenticeship programs to help unemployed people find jobs and to 

help those already in the workforce advance in their careers. 

Countries Have 

Various Policies and 

Practices That May 

Help Some Women 

and Low-Wage/LowSkilled Workers Enter 

and Remain in the 

Labor Force 

Family Leave Policies 

Differed In Four Major 

Ways, Including Eligibility 

Requirements and Length, 

Payment, and Flexibility 

Many countries have developed and funded parental leave policies to 

assist employees in combining their work and family lives, recognizing, in

part, the need to promote women’s participation in the labor force. A 1996 

directive of the European Council requires all countries in the EU—

including each of the European countries we reviewed—to introduce 

legislation on parental leave that would provide all working parents the 

right to care for their newborn or newly adopted child for at least 

3 months while retaining a position of equal status, recommending that

Page 10 GAO-07-817 Women and Low-skilled Workers
benefits be paid during that time. In the U.S., the FMLA allows eligible 

employees approximately 3 months of unpaid leave that may be used for 

these purposes. (For an overview of the policies in our study countries, 

see app. III.) Family leave policies in the countries we studied were 

generally funded through tax revenues and general revenues. Because 

some of these countries are social welfare states, their tax revenues 

represent a greater share of their GDP, allowing for the funding of various

policies. For example, Canada, the UK, and the Netherlands fund paid 

leave policies in part through national insurance programs, which use 

payroll taxes paid by employers and employees. Denmark’s paid 

maternity, paternity, and parental leaves are financed by income tax 

revenues through an 8 percent tax on all earned income.17

Eligibility provisions are a part of most leave policies we reviewed, and 

sometimes the service time with an employer determines the amount of 

leave a parent can take. Many national leave policies in our study 

countries require employees to work for a period of time before they can

take leave, giving employers assurances that employees are committed to 

their jobs. For example, in Denmark, employed women with a work 

history of at least 120 hours in the 13 weeks prior to the leave are allowed 

18 weeks of paid maternity leave.18 In some countries, though, all parents 

are entitled to take family leave, which in some cases is paid. In Sweden, 

all parents are entitled to parental benefits whether or not they are 

working. In the UK, by law, all expectant employees can take up to 

52 weeks of maternity leave, regardless of how long they have worked for 

their employer. 

To enhance workers’ ability to take leave, the countries we studied replace 

all or part of the wages they forgo while on leave. Dutch employees on 

maternity leave are entitled to receive 100 percent of their wages, up to a

maximum; their partners receive their regular rate of pay from their 

employers. In the UK, women who meet qualifying conditions of length of 

service and who earn a minimum amount for the national insurance 

system—or, on average, 87 British pounds per week—can receive payment 

 17The 8 percent mandatory contribution also funds other social benefits, including sick

leave, active labor market policies, and retirement policies, according to a government

official. 

18Persons who are self-employed, have completed vocational training for a period of 

18 months, are doing paid work placement as part of a vocational training course, or are

unemployed may also be eligible for cash benefits following the birth of a child. 

Page 11 GAO-07-817 Women and Low-skilled Workers
generally equal to 90 percent or less of their average weekly earnings.19 In 

Ireland, women can generally be paid at 80 percent of earnings, subject to

her contributions into the social insurance system. However, employers 

may offer more leave than legally required. 

Because leave is intended to help parents balance career responsibilities 

with caring—not just for newborns, but for children in general—many 

countries allow parents to take their allotted parental leave all at once or 

to divide it into parts. In the Netherlands, Sweden, Denmark, and the UK, 

parents have the option of using their leave flexibly by dividing it into 

discrete parts, sometimes with the consent of an employer. In the 

Netherlands, for example, parents may divide the leave into a maximum of 

three parts and can take the leave simultaneously or following one 

another. The Netherlands, Sweden, and Denmark allow parents the use of 

parental leave until their child turns either 8 or 9, while the UK allows the 

use of parental leave until a child turns 5. 

Recognizing that familial obligations may extend beyond an employee’s 

children, some countries allow workers to take leave to care for family 

members. The amount of time workers can take to care for family 

members varies among the countries we reviewed. In Canada, all 

employees are eligible to take 8 weeks of unpaid leave to provide care and

support to a seriously ill family member or someone considered as a 

family member.20 In other countries, the leave is more limited. New 

Zealand requires that all employers provide a minimum of 5 days of paid 

sick leave for an eligible employee’s own illness or to care for family 

members.21

 19The rate of statutory maternity pay is 90 percent of a woman’s average weekly earnings 

for the first 6 weeks, followed by the lesser of a flat rate, currently £108.85 a week, or 

90 percent of her average weekly earnings for the remaining 33 weeks. Employers who are 

liable to pay statutory maternity pay may reclaim 92 percent of the amount they pay from

Her Majesty’s Revenue and Customs. Statutory payment was extended in April 2007 from

26 to 39 weeks. 

20The definition was expanded in 2006 beyond those caring for parents, children, and 

spouses to include persons caring for other family members—such as siblings, 

grandparents, aunts, and uncles—and others considered like family members. Persons

must be deemed at risk of dying within 26 weeks. 

21To be eligible, an employee must have worked for 6 months continuously for the same 

employer or be deemed eligible at the discretion of their employer. The leave may be used 

for an employee’s own illness or can be used to care for a spouse or dependent, including a 

child or elderly parent. 

Page 12 GAO-07-817 Women and Low-skilled Workers
A few countries have developed national policies that promote flexible 

work opportunities, apart from leave, that may help women and lowwage/low-skilled employees join and stay in the workforce. In the 

Netherlands, by law all eligible employees—whether or not they are 

parents—have the right to reduce or increase working hours, no matter 

their reason for doing so.22 Employers can deny the request only if the 

change would result in a serious obstacle, such as not having enough other 

workers to cover the hours an employee wishes to reduce. Similarly, the 

UK’s 2003 Right to Request Flexible Working and Duty to Consider law 

allows workers to request changes to the hours or location of their work, 

to accommodate the care of children and certain adults.23 According to 

government officials from the UK Departments of Trade and Industry, and

Communities and Local Government, this law provides the government 

with a cost-effective means to help women return to work. Although 

similar to the law in the Netherlands, this law provides employees with 

less defined rights, and employers in the UK may refuse an employee’s 

request when the proposed arrangement is not supportable by the needs of 

the business. 

Flexible Working 

Arrangements Help 

Employees Balance Work 

and Private 

Responsibilities 

Similarly, flexible working opportunities for employees are often adjusted

or developed by individual employers. Many employers adjusted the Right 

to Request law by extending to all employees the benefits it required, 

according to government officials from the UK Departments of Trade and 

Industry and Communities and Local Government. In other cases 

employers have developed new opportunities. One local government 

employer in the UK offers employees the ability to take a career break for 

up to 5 years to care for children or elders, with the right to return to the 

same position. Employees of the organization are also able to take time off

when children are home on holidays, share the responsibilities of one 

position with another employee through the practice of job sharing, and

vary their working hours. In Saskatchewan, Canada, one employer 

reported allowing employees to average their work hours over a 2-week 

 22The law is the Working Hours Adjustment Act of 2000. To be eligible for the Working

Hours Adjustment Act of 2000, an employee must work in an organization with more than

10 workers, and must have been employed for at least a year by the time his/her work

hours would be adjusted. 

23The Right to Request Flexible Working and Duty to Consider law, sometimes referred to

as “soft touch,” became effective in 2003. Eligible employees must also have worked for

their employer continuously for 26 weeks at the time the application is submitted. Children 

have to be under 6 or have a disability. Adults must be a spouse, partner, civil partner, or 

relative, or live at the same residence as the employee submitting a request. 

Page 13 GAO-07-817 Women and Low-skilled Workers
period, giving them the ability to accumulate overtime hours and have a 

sense of control over their time. In Denmark, a large employer allowed an

employee who was returning to work from a long-term illness to gradually 

increase her working hours until she reached a full-time schedule over the 

course of several months. Flexible working arrangements in the United 

States have been adopted by some employers, but are not mandated in

federal law. 

Childcare Policies Assist 

Working Parents 

All of our study countries have made a public investment in child care, a 

means of allowing women to access paid employment and balance work 

and family, according to the European Commission. (See table 3). In 

Canada, for example, the government provides direct financial support of 

$100 a month to eligible parents for each child under 6. In New Zealand, 

support is available through a childcare tax credit of $310 per year to 

parents who have more than $940 in childcare costs. Researchers have 

reported that, like leave benefits, early childhood education and care 

services in European countries are financed largely by the government.24

According to these researchers, funding is provided by national, state, or

regional and local authorities, and the national share typically is dominant 

in services for preschool-age children. These researchers also reported 

that care for very young children, and, to a lesser extent, for preschool 

children, is partially funded through parental co-payments that cover an 

average of 15 percent to 25 percent of costs. 

In some countries the provision of early childhood care and education is 

viewed as a social right, in others as a shared responsibility. In Sweden 

and Denmark, parents are guaranteed a place in the state childcare system

for children of a certain age, according to the European Commission. More 

than 90 percent of Danish children are in publicly supported childcare 

facilities, according to a Danish researcher. Other countries, including 

France, take a similar view with respect to early childhood education. In 

France about 90 percent of children ages 3 to 6 and about 35 percent of 

2-year-olds attend public preschools, provided free of charge to parents, 

according to research. Other countries view the provision of child care as 

a responsibility shared among government, employers, and parents. In the 

Netherlands, overall, employers, employees, and the government are each 

 24Janet C. Gornick and Marcia K. Meyers, “Support for Working Families: What the United 

States Can Learn from Europe” The American Prospect, (2001), 12:1. 

Page 14 GAO-07-817 Women and Low-skilled Workers
expected to pay about one-third of childcare costs, according to a report

by the European Commission (see table 3). 

Table 3: Select Government-Supported Childcare Initiatives 

Country 

(percentage of GDP country

spends on childcare and/or

early education) Direct financial benefits Tax incentives 

Provision of space in the 

national childcare or early 

education system 

Canada 

(Canada spends about 0.2 

percent of its GDP on pre 

primary education for 3 to 6 

year olds; for all child care, 0-

12, the funding amounts to 0.4 

percent of GDP.) 

Universal Child Care Benefit: 

Direct financial support of $100

a month—up to $1,200 a year—

to eligible parents for each child 

under 6. 

Provincial childcare subsidy: 

Saskatchewan’s childcare 

subsidy provides subsidies for 

families with children in 

provincially licensed childcare 

facilities. Low-income parents

receive subsidies that cover 85

percent of child care fees on 

average. The subsidies are paid 

directly to child care facilities.

Child Tax Benefit: 

Tax-free monthly payment to 

eligible families with children 

under 18. 

Child Care Spaces Initiative: 

Supports the creation of up to 

25,000 new childcare spaces in

2007. 

Denmark 

(Denmark devotes 2.1 percent 

of its GDP to fund all 

kindergarten and leisure-time

services.) 

Subsidy: 

The government pays the 

majority of childcare costs and 

parents pay about one-fourth.

Space in childcare system: 

The public childcare system 

guarantees a place for each 

child beginning at 6 months of 

age. If childcare centers have

waiting lists, local municipalities 

find alternative solutions. 

France 

(France devotes at least 1 

percent of its GDP to childcare

and pre primary education 

services.) 

Subsidy: 

Parents pay about 12 percent of 

their income toward the cost of

center-based care for children

under 3. 

Early education:

Every child age 3-6 has the right 

to attend preschool free of 

charge. The enrollment of 

2-year-olds from

socioeconomically 

disadvantaged backgrounds is

also a priority. 

Ireland 

(Funding of public pre primary 

education services: 0.44 

percent of GDP [0.39 percent 

public and 0.05 percent private]) 

Child Benefit and Early 

Childcare Supplement: 

Parents may receive payment 

for each child up to age 16, or 

19, under certain conditions, 

regardless of employment 

status or use of childcare. 

Parents with young children up 

to age 6 can receive a 

supplement to the Child Benefit.

Tax incentives: 

Various financial incentives, 

including tax relief and 

allowances, have been put in 

place to encourage the private 

sector—e.g., employers, the 

voluntary sector, or other firms 

and individuals—to increase the 

available provision of childcare. 

Childcare spaces: 

In 2006, the government 

announced measures to create 

50,000 places in after-school 

care by 2010. 

Page 15 GAO-07-817 Women and Low-skilled Workers
Country 

(percentage of GDP country

spends on childcare and/or

early education) Direct financial benefits Tax incentives 

Provision of space in the 

national childcare or early 

education system 

Netherlands 

(The Netherlands devotes 0.38

percent of its GDP [0.37 percent 

public and 0.01 percent private] 

to fund pre primary educational 

services.) 

Subsidy: 

The government reimburses 

parents for at least one-third of 

childcare costs, based on 

income. Low-income parents 

may receive reimbursement for 

up to 95 percent of costs. 

As of January 2007, employers 

have a mandatory contribution

of about one-third of childcare 

costs (one-sixth per parent) to 

be collected by raising the 

employers’ contribution to 

unemployment insurance 

premiumsa

New Zealandb

Childcare Tax Credit:

A tax rebate of $310 per year is

available to parents who have 

paid more than $940 per year 

for childcare. 

Early education: 

All 3-and 4-year-olds in teacherled early childhood education 

services can receive up to 

20 hours of education per week, 

free of charge, beginning July 

2007. 

Sweden 

(Sweden devotes 1.9 percent of 

its GDP to fund preschool 

services.) 

Child Benefit: 

Parents of children under the 

age of 16 can receive a child 

allowance. 

Subsidy: 

Parental fees for childcare—

which may be through regular 

preschools or home-based 

care—accounted for about 

17 percent of the cost in 1998. 

Early education:

Children of stay-at-home 

parents can take part in this 

education, which is generally 

available free of charge. 

United Kingdom 

(The UK spends 0.47 percent of 

its GDP to funding pre primary

educational services [0.45 

percent public and 0.02 percent 

private]). 

Emergency discretionary funds: 

Some single parents may be 

eligible to receive funds to 

assist in overcoming 

emergencies—including those

related to childcare—that arise 

in the first 2 months of 

employment. 

Tax credits: 

Tax credits are available to 

assist working parents in paying 

up to 80 percent of the 

remainder of childcare costs.

Early education: 

Early education is provided for 

121⁄2 hours per week for 

38 weeks a year for all 3- and 

4-year-olds free of charge. 

Page 16 GAO-07-817 Women and Low-skilled Workers
Country 

(percentage of GDP country

spends on childcare and/or

early education) Direct financial benefits Tax incentives 

Provision of space in the 

national childcare or early 

education system 

United States

(The United States spends 

about 0.4 percent of its GDP on 

funding of public pre primary 

education services.) 

Child Care and Development 

Fund: 

Eligible parents may receive 

vouchers or certificates to 

purchase child care services 

with a legally-operating provider 

of choice. 

Dependent Care Tax Credit: 

Tax credits are available up to

35 percent of qualifying 

expenses, or up to $3,000 in 

childcare expenses for one 

child. 

Head Start: 

Provides early childhood 

education and development 

services to low income 

preschool children. 

Source: GAO analysis of information from country officials, OECD, and government and related Websites. 

Note: We were unable to identify all child care information for each of the countries we examined. 

a

According to the Dutch Ministry of Social Affairs and Employment, the contributions would be offset 

for employers by reducing taxes on business profits. 

b

Comparable information on GDP in New Zealand was unavailable.

Aside from public support for childcare, some employers in the countries 

we reviewed offered additional resources for their employees’ childcare

needs. For example, although not mandated by law until January 2007, 

many employers in the Netherlands had been contributing toward their 

employees’ cost for childcare. In the Netherlands, about two-thirds of 

working parents received the full child care contribution from their 

employers, according to a recent survey.25 In addition, a Canadian union 

negotiated employer subsidies to reimburse some childcare expenses for 

its members, according to union representatives.

Training Programs Can Be 

Targeted at the 

Unemployed or LowSkilled Workers 

Our study countries provide services intended to help the unemployed 

develop the skills necessary to obtain work. These include providing 

training directly and providing private entities and employers with 

resources to provide training or apprenticeships. To address the skill 

deficit of those who are unemployed, the UK, for example, has recently 

adopted recommendations to increase adult skills training, and create an 

 25The survey was commissioned by the Dutch Ministry of Social Affairs and Employment. 

Page 17 GAO-07-817 Women and Low-skilled Workers
integrated employment and skills service, among other things.26 In 

Denmark, the unemployed are required to accept offers, such as education 

and training, after 9 months of unemployment to help them find work or 

they will lose benefits, according to employee representatives from the 

largest Danish trade union confederation that represents the public and

the private sectors.27 Particular groups of the unemployed that may face 

difficulty in finding employment, such as women and the low-skilled, may 

be offered training earlier. Employers in Denmark may receive wage 

subsidies for providing job-related experience and training to the 

unemployed, or for providing apprenticeships in fields with a shortage of 

available labor. In the Netherlands, the government provides individual 

support—including training, apprenticeships, or job coaching—for the 

unemployed to help them secure a job, according to the Dutch Ministry of 

Social Affairs and Employment. In the United States, training services 

generally are available through the WIA programs, which are provided by 

government.

Local governments and private entities also seek to help the unemployed

obtain and upgrade skills. For example, a local government council in the 

UK provides unemployed women training in occupations in which they are 

underrepresented, such as construction and public transport. While the 

women are not paid wages during the typical 8-12 weeks of training, they

may receive unemployment insurance benefits as well as additional 

support for childcare and transportation. Additionally, a privately run 

association in the Netherlands provides entrepreneurial training to women 

who have been on public assistance for at least 10 years to start their own 

businesses, according to an organization official. The association pays the 

local college to provide the business-related classes and coaches, who 

help participants develop business plans. Both of these initiatives were 

funded jointly by the local governments and the European Social Fund. 

 26A comprehensive review commissioned by the UK government showed that less than half

of those with no qualifications are employed, compared to 90 percent of those with 

graduate-level qualifications. Such findings showed that skills across the UK lag behind 

those of its competitors, particularly with regard to basic and vocational skills. For 

example, more than one in three adults do not hold the equivalent of a basic school 

qualification, nearly one in two has difficulty with numbers, and one in seven is 

functionally illiterate. See Leitch Review of Skills: Prosperity for All in the Global

Economy (HM Treasury, London: December 2006). 

27In addition to mandatory offers of education and training, for example, the Danish model 

known as ‘flexicurity’ includes a high degree of labor market flexibility and generous 

unemployment benefits. 

Page 18 GAO-07-817 Women and Low-skilled Workers
In addition to providing training to the unemployed, our study countries 

also have training initiatives focused on those already in the workforce. 

For example, Canada introduced an initiative to ensure that Canadians 

have the right skills for changing work and life demands.28 The program’s 

goal is to enhance nine essential skills—reading text, document use, 

working with numbers, writing, oral communication, working with others, 

continuous learning, thinking skills, and computer use—that provide the 

foundation for learning all other skills and enable people to evolve with 

their jobs and adapt to workplace changes, according to the government. 

The broad-based initiative provides resources to help organizations 

incorporate workplace literacy and the essential skills into existing human 

resources practices. Denmark has had a public system in place since the

mid-1960s that allows low-skilled workers to receive free education, wage 

subsidies, and funding for transportation costs. About one-half of unskilled 

workers took part in training courses that were either publicly financed or 

provided privately by employers in the past year, according to a Danish 

researcher. The UK has also developed an initiative that offers employers 

training assistance to meets their needs. The UK’s Train to Gain program, 

based on an earlier pilot program, provides employers free training for 

employees to achieve work-related, competence-based qualifications that

reflect the skills needed to do a job effectively. Qualifications can be 

earned in a variety of occupational areas, such as providing health and

social services. To qualify for Train to Gain, employers need to agree to at

least a minimum level of paid time that employees will be allowed to use 

for training. During the pilot program, employers were given a wage 

subsidy to compensate for giving employees paid time off; evaluations 

showed the effect of these subsidies to be mixed. Currently, only 

employers with fewer than 50 full-time employees are eligible for limited 

subsidies under Train to Gain. Train to Gain also provides skills advice to

employers and helps match business needs with training providers. The 

UK Leitch Review recommended that the government provide the bulk of 

funding for basic skills training and that all adult vocational skills funding 

be routed through programs such as Train to Gain.

29

As is the case with other benefits, many training programs aimed at 

increasing employees’ skills are initiated privately by employers and 

employees. For example, an employer in Saskatchewan reported that he

 28The Essential Skills and Workplace Literacy Initiative was introduced in 2003. 

29See Leitch Review of Skills: Prosperity for All in the Global Economy (HM Treasury,

London: December 2006). 

Page 19 GAO-07-817 Women and Low-skilled Workers
supports employees’ advancement by paying for necessary educational 

courses, such as those that prepare employees for required licenses. A 

large government employer in the UK offers flexible training to make it 

more easily accessible to women. For example, training is made available 

online, from work or home, as well as through DVDs that can be viewed at 

one’s convenience. In the Netherlands, according to an employer 

representative, most training is developed through agreements in which 

employers agree to pay. In Denmark, a director in the Ministry of 

Education reported that some companies give employees the right to 

2 weeks per year of continuing education in relevant and publicly funded

education. 

Research has found that workplace policies such as childcare and family 

leave encourage women to enter and return to the workforce, while 

evaluations of training policies show mixed results. Readily available 

childcare appears to enable more women to participate in the labor 

market, especially when it is subsidized and meets quality standards such 

as having a high staff-to-child ratio and high proportion of certified staff. 

Women are also more likely to enter and remain in the workforce if they

have paid family leave, although the length of leave affects their 

employment. An extensive review of available research by the European 

Commission shows mixed results in whether training helps the 

unemployed get jobs. Some training initiatives have shown promise but 

have not been formally evaluated. In general, researchers and officials 

reported that it is difficult to determine the effects of a policy for a variety

of reasons. 

Although Certain 

Workplace Policies 

Are Associated with 

Increased 

Participation in the 

Labor Force, in 

General, Effects Are 

Not Definitive 

Childcare and Paid Family 

Leave Are Associated with 

an Increase in Labor Force 

Participation 

Readily available childcare, especially when it is subsidized and regulated 

with quality standards, such as a high staff-to-child ratio and a high 

proportion of certified staff, appears to increase women’s participation in

the labor force by helping them balance work and family responsibilities, 

according to research from several cross-national studies. While studies 

show that childcare is associated with an increase in female labor force 

participation, a report by the European Commission found that, if parents 

feel that there are problems with the quality of childcare—as is the case 

with childcare in the UK due, in part, to staff recruitment and retention 

issues—they will be less likely to use it.30 Additionally, the European 

 30European Commission, ‘Making Work Pay’ Debates from a Gender Perspective (Belgium: 

European Communities, 2006), 110. 

Page 20 GAO-07-817 Women and Low-skilled Workers
Commission reports that women prolong their return to work when 

childcare is not subsidized and its costs are high. Low-wage workers, 

especially single parents, who are predominantly women, are particularly 

sensitive to the price of childcare, according to a European Commission 

report. Research from the United States also shows that highly priced 

childcare can deter mothers from working, according to a review of the 

literature. The association between childcare and women’s labor force 

participation is found in several studies that control for a variety of 

factors, including individual countries’ cultural norms and experiences. 

However, the relationship between early childhood education—which acts 

as childcare for some parents—and women’s labor force participation is 

uncertain. Because many unemployed mothers also place their children in

subsidized preschool, any impact that the preschool has on encouraging 

mothers to work may appear to be diminished, according to a crossnational study.31

Research shows that paid family leave encourages women’s employment 

by helping them to enter the labor market and to return to work more 

quickly after having a child. Women who have a set leave period, and a 

guarantee of a job upon return, tend to return to work more quickly than

women who have to quit their job and re-enter the labor market. One 

extensive review of the literature on family leave found that leave 

increases the chance that women will return to work by the end of the 

year following the birth.32 Another study examining paid maternity leave of

varying lengths of time in several Western European countries, including 

Denmark, France, Ireland, and Sweden, concluded that maternity leave 

may increase women’s employment rate by about 3-4 percent.

33

Furthermore, paid leave set aside for fathers has allowed Swedish mothers 

 31Florence Jaumotte, “Female Labour Force Participation: Past Trends and Main 

Determinants in OECD Countries,” OECD Economics Department Working Papers 

No. 376 (2003): 19. 

32Janet C. Gornick and Marcia K. Meyers, Families That Work: Policies for Reconciling 

Parenthood and Employment (New York: Russell Sage Foundation, 2003), 245. 

33This may overstate the increase in employment. In some cases, people on family leave are 

considered “employed but absent from work” and this may account for a quarter to onehalf of the increase associated with longer lengths of leave (9 months or more). 

Christopher J. Ruhm, “The Economic Consequences of Parental Leave Mandates: Lessons

from Europe,” The Quarterly Journal of Economics. Vol. 113, No.1 (1998): 311-312. 

Page 21 GAO-07-817 Women and Low-skilled Workers
to return to work more quickly since fathers are encouraged to share in 

the caring duties, according to one study.34 

Research findings, however, are not conclusive as to the ideal length of 

family leave to encourage women to return to work. For example, if leave 

is too short, women may quit their job in order to care for their child, 

according to a European Commission report. Another study, however, 

found that if leave is too lengthy, it may actually discourage women from 

returning to work after having a child. One researcher stated that French 

mothers with at least two children returned to the workforce less 

frequently when they became eligible for 3 years of family leave. On the 

contrary, some researchers found that Sweden’s lengthy leave allowed 

more women to enter and remain in the labor force in the long run. One 

review of the literature concluded that leave of up to about 1 year is 

positively associated with women’s employment, while another found that 

after 20 weeks, the effect of leave on employment begins to deteriorate. 

The Effects of Most 

Workplace Policies and 

Practices, Including 

Training, Are Not 

Definitive 

Evaluations of training for the unemployed, where they exist, have shown 

mixed results in helping individual workers. Research on training program 

participants from Sweden and Denmark found that training programs do 

not appear to positively affect all participants’ employment. While the 

Danish government’s labor market policies seem to have successfully 

lowered the overall unemployment rate to around 4 percent by the end of 

2006, according to Danish officials, the effect of specific training programs 

on participants’ employment is difficult to discern.35 On the other hand, a 

number of evaluations of French training programs suggest that these 

programs help participants secure jobs. New Zealand’s evaluation of two 

of its training programs, which provide both remedial and vocational skills 

to participants, found that the training had a small effect on the 

 34Elina Pylkkanen and Nina Smith, “Career Interruptions due to Parental Leave: A

Comparative Study of Denmark and Sweden,” OECD Social, Employment and Migration

Working Papers No. 1 (2003): 30. 

35This is partly due to the fact that most studies evaluate all active labor market programs

together, rather than single program types. These programs include not only skills and 

qualifications upgrades but also wage subsidized employment and practical work 

experiences in enterprises. In addition, all recipients of unemployment benefits in Denmark 

are required to participate in active labor market programs if they do not find employment 

within a certain time-frame, so there is no comparison group for formal evaluations. 

Page 22 GAO-07-817 Women and Low-skilled Workers
participants’ employability.36 Nearly all evaluations of Canadian and U.S. 

training programs show that the programs increased the ability of the 

unemployed to get jobs, according to a literature review by the Canadian

government. According to a European Commission report, one 

researcher’s review of 70 training program evaluations, including those in 

Denmark, France, the Netherlands, Sweden, and the UK, suggested that 

training programs have a modest likelihood of making a positive impact on

post-program employment rates. However, the European Commission 

reports that many studies on individual outcomes are based upon shortterm data, while the effects on participants’ employment may not be 

evident for 1 to 2 years or more. This is partly because participants may 

not actively search for a job while they are in training. In the long run, 

however, training programs may lead participants to find more suitable 

jobs and spend less time out of the workforce. 

Some national and local training initiatives that we reviewed—both those 

for the employed and those for the unemployed—have shown promise, 

although some have not been subject to an evaluation. For example, an 

evaluation of the precursor to the UK’s national Train to Gain program 

found that 8 out of 10 participants believed they had learned new skills, 

and employers and participants both felt that the training enabled 

participants to perform better at work. However, the evaluation estimated 

that only 10-15 percent of the training was new training, while the 

remaining 85-90 percent of the training would have occurred without the 

program. Although a planned evaluation has not yet been conducted, an 

individual UK employer reported that it trained 43 women for jobs in 

which they are underrepresented. Fourteen of these women found 

employment and 29 are in further training. Those in further training report 

that they are more confident that they can find a job, and some are actively 

seeking employment, according to the employer. Further, 10 out of 

70 women began their own business after completing a program in the 

Netherlands that provides women on social assistance with training to 

become entrepreneurs, according to the program provider. 

Even where evaluations do exist, it is difficult to determine the effects of

any policy for a variety of reasons. Research indicates that policies that

appear to increase female labor force participation also interact with 

cultural factors, such as a country’s ideology concerning social rights and

 36Roopali Johri et al, Evidence to Date on the Working and Effectiveness of ALMPs in New

Zealand (New Zealand Department of Labor and Ministry of Social Development, 2004), 15. 

Page 23 GAO-07-817 Women and Low-skilled Workers
gender equality, according to a researcher from Ireland. In some cases, 

too, new policies interact with the effects of existing ones. For example, a 

researcher reported that the French government provides payments to 

mothers who may choose to stay home with their children, while also 

subsidizing childcare that encourages mothers to work. Additionally, 

changes in the labor market may actually bring about the enactment of 

policies, rather than the other way around. For example, it is difficult to be

sure whether the availability of childcare causes women to enter the labor 

force or if it is an effect of having more women in the workforce, 

according to one researcher’s review of the relevant literature. Several of 

the studies we reviewed attempt to correct for these factors, but a 

researcher stated that it is difficult to determine cause and effect with 

certainty even with the best of studies. 

Further, few evaluations of certain policies and practices have been 

conducted. According to both a European Commission report and a study 

by the Canadian government, the majority of training evaluations come 

from Canada and the United States, where such studies are often 

mandated.37 Evaluations are conducted less frequently in Europe although,

according to the European Commission, this is starting to change. 

Moreover, some policies were recently developed, and governments 

frequently make changes to existing policies, a fact that may make it 

difficult to evaluate them. For example, a report by the Canadian 

government states that flexible work arrangements are relatively new and 

represent an area in which research is needed. In other cases, a policy 

simply codified into law a widely used practice. For example, a 

government official in the Netherlands reported that it was very common 

for Dutch women to choose to work part-time even before legislation 

passed that promoted employees’ right to reduce their working hours. 

 37European Commission, Employment in Europe 2006 (Belgium: European Communities, 

2006), 134; and Gender Equality in the Labor Market: Lessons Learned (Human Resources

Social Development Canada, 2002), 22. 

Page 24 GAO-07-817 Women and Low-skilled Workers
The experiences of the countries we reviewed have shown that 

characteristics of policies, such as the level of payment during leave, can 

affect whether an employee uses various workplace benefits. For example, 

the province of Saskatchewan in Canada provides 12 days of unpaid leave 

per year, for time away from work to deal with emergencies or sickness.38

However, according to a Saskatchewan government official, low-wage 

workers cannot always afford to take the unpaid leave. Similarly, 

according to a University of Bristol professor, low-income mothers in the 

UK disproportionately return to the workforce at the end of paid maternity 

leave, whereas more affluent mothers tend to return at the end of unpaid 

leave. The level of payment can also affect the likelihood that men are 

willing to take leave, thereby allowing women to shorten their leave and 

return to work if they choose to do so. A review of the literature from 

European countries demonstrates that men are much more likely to take 

leave when they receive a high percentage of their wages.39 When parental

leave can be shared between parents and the level of payment is low, 

women tend to take the leave, in part because their income level is often 

lower than their husband’s. The review also found that men are more 

likely to take parental leave when it reserves a period of time exclusively 

for their use, and does not allow that time to be transferred to the mother. 

A report from the European Commission also found that the ability to use 

leave flexibly, such as for a few hours each day or over several distinct 

periods rather than all at once, can also increase parents’ take-up rates for 

leave as parents are able to care for their children and stay in the labor 

force at the same time. 

While Several Factors 

Affect Uptake,

Employees’ Use of 

Workplace Benefits 

Can Have 

Implications for 

Employers and 

Employees 

Employer views and employee perceptions on workplace benefits, such as 

leave and training, can also directly affect an employee’s use of them. 

According to researchers in Canada, flexibility in the workplace is 

determined more by individual managers and workplace culture than by 

whether specific policies exist. Their research found, for example, that the 

ability to arrange a schedule in advance and interrupt it if needed is very 

important to employees, but that this ability is not necessarily associated 

with express policy. What matters most, rather, is who an employee 

 38The provinces of British Columbia, New Brunswick, Newfoundland and Labrador, Nova 

Scotia, Ontario, Prince Edward Island, and Quebec also provide unpaid Family 

Responsibility Leave of varying lengths. 

39Janet C. Gornick and Marcia K. Meyers, “Supporting a Dual Earner/Dual Carer Society: 

Lessons from Abroad,” in A Democracy That Works: The Public Dimensions of the Work

and Family Debate, edited by Jody Heymann and Christopher Beem, New York: the New

Press (forthcoming). 

Page 25 GAO-07-817 Women and Low-skilled Workers
reports to and how willing a supervisor is to be flexible. Research from the 

European Commission also indicates that an organization’s culture can 

determine whether or not parents take leave and that both women and 

men may face unsupportive workplaces. For example, according to the 

report, men may face negative attitudes from employers when wishing to 

take family leave. In addition, a review of a UK training program that 

offered free or subsidized training and wage subsidies to employers for the 

time employees spent in training found that small employers were 

generally less positive than larger ones about the value of training for 

employees.40 According to a UK employee representative, despite the 

program’s benefits, many small employers did not participate, as they 

either did not see a need for training or feared losing staff if they acquired 

new skills. University researchers in Denmark expressed similar concerns, 

stating that companies face risks in providing training to increase the skills 

of their employees as employees with additional skills may leave. Further, 

according to a university researcher in Canada, employer-supported 

training tends to be provided to the higher-skilled and educated, and the 

low-skilled may have limited opportunity to improve. A cross-national 

study from the OECD, which included the countries we reviewed, found 

that many employers tend to view training for the low-skilled as a cost, 

rather than an investment, and devote substantially more resources to 

their high-skilled workers, on average. In addition, an employee’s 

perceptions on training can also affect his or her uptake of opportunities. 

For example, employee representatives from Denmark’s largest trade 

union confederation said that low-skilled employees are more likely to 

have had negative experiences with education and that these experiences 

can affect whether they take advantage of workplace training

opportunities to increase their skills. 

Employees’ use of workplace benefits can create management challenges 

for their employers. For example, an employer in Saskatchewan reported 

that covering for the work of staff on family leave can be complicated. He 

said that although he was able to hire temporary help to cover an 

employee on maternity leave, he faced an unexpected staff shortage when

the employee decided toward the end of her leave not to return to work 

and the temporary employee had found another job. In addition, a 

university in the UK reported difficulties in managing employees’ leave, as 

many of the organization’s research projects are externally funded and do

 40Department for Education and Skills, “Employer Training Pilots: Final Evaluation 

Report,” (2006). 

Page 26 GAO-07-817 Women and Low-skilled Workers
not provide extra funds to cover for employees on maternity leave. She 

added that finding a suitable replacement for employees that are 

specialized also poses problems. An official affiliated with the largest 

employer association in the Netherlands stated that it can be hard to 

organize work processes around employees’ work interruptions, especially 

during short-term and unplanned leaves. Similarly, university researchers 

in Denmark reported that coordinating arrangements during an 

employee’s absence, including during training, may be problematic for 

small employers. 

The use of family leave or part-time work schedules may have negative 

implications for an employee’s career. Employers have indicated that they

would prefer to hire an older woman with children rather than a younger 

woman who has yet to have children, according to university researchers 

in Denmark.41 In addition, long parental leaves may lead to an actual or 

perceived deterioration in women’s labor market skills, according to an 

EU report, and can have negative effects on future earnings. According to 

employee representatives in Canada, in the high-tech sector, where there 

are rapid changes in technology, the use of parental leave can be 

particularly damaging. According to a university employer in the UK, 

women who choose part-time work may find that they continue to work 

full-time schedules due to the demanding nature of their chosen field, even 

though they receive part-time wages. In addition, some part-time jobs have 

no career advancement opportunities and limited access to other benefits, 

such as payment during leave and training. Since employers tend to target

their training to higher-skilled and full-time workers, employees who opt 

to work part-time may have fewer opportunities for on-the-job training 

that could help them advance, according to university researchers in the 

Netherlands. 

 41According to government officials in Denmark, to counter gender discrimination, all 

private sector employers are required to contribute to a fund that pays for periods of leave 

on the basis of their number of employees, regardless of gender. 

Page 27 GAO-07-817 Women and Low-skilled Workers
Workplace policies and practices of the countries we studied generally

reflect cooperation among government, employer, and employee 

organizations. Many developed countries have implemented policies and

practices that help workers enter and remain in the workforce at different

phases of their working lives. These policies and practices, which have

included family leave and childcare, for example, have been adopted 

through legislation, negotiated by employee groups, and, at times, 

independently initiated by private industry groups or individual employers. 

U.S. government and businesses, recognizing a growing demand for 

workplace training and flexibility, also offer benefits and are seeking ways

to address these issues to recruit and retain workers. Potentially 

increasing women’s labor force participation by further facilitating a 

balance of work and family, and improving the skills of low-wage workers 

throughout their career, may be important in helping the United States 

maintain the size and productivity of its labor force in the future, given

impending retirements. While other countries have a broader range of 

workplace benefits and flexibility and training initiatives, little is known 

about the effects of these strategies. Whether the labor force participation 

gains and any other positive outcomes from adopting other countries’ 

policies would be realized in the United States is unknown. Moreover, any 

benefits that might come from any initiatives must be weighed against 

their associated costs. Nonetheless, investigating particular features of 

such policies and practices in some of the developed countries may 

provide useful information as all countries address similar issues. 

We provided a draft of this report to the Departments of Labor and State 

for review and comment. The Department of Labor provided technical 

comments on the draft report, which we have incorporated where 

appropriate. The Department of State did not have comments on this 

report. 

Concluding 

Observations 

Agency Comments 

We are sending copies of this report to the Secretary of Labor, the 

Secretary of State, appropriate congressional committees, and other 

interested parties. In addition, the report will be available at no charge on

GAO’s Web site at http://www.gao.gov. 

A list of related GAO products is included at the end of the report. If you 

or your staff have any questions about this report, please contact me at 

(202) 512–7215. You may also reach me by e-mail at nilsens@gao.gov. 

Contact points for our Offices of Congressional Relations and Public 

Page 28 GAO-07-817 Women and Low-skilled Workers
Affairs may be found on the last page of this report. Key contributors to 

this report are listed in appendix IV.

Sigurd R. Nilsen 

Director, Education, Workforce, 

And Income Security Issues 

Page 29 GAO-07-817 Women and Low-skilled Workers
Appendix I: Objectives, Scope and Appendix I: Objectives, Scope and Methodology 

Methodology 

To describe the policies and practices implemented in other developed 

countries that may help women and low-wage/low-skilled workers enter 

and remain in the labor force, and to identify the factors that affected 

employees’ use of workplace benefits and the resulting workplace 

implications, we conducted site visits or in-depth interviews with various 

officials in four developed countries—Canada, the United Kingdom (UK), 

the Netherlands, and Denmark. We selected Canada because of its limited 

government role in the economy, and the UK to compare policies with a 

European country that has a preference for a limited government 

intervention in labor markets, and because it recently implemented a law 

that encourages flexible work schedules. We selected the Netherlands as it 

has a higher proportion of part-time workers than any other country in 

Europe and has an extensive workforce development system. We selected

Denmark because it has had work-family policies in place for more than 

30 years, has a goal of gender-equitable labor force participation, and 

provides extensive training programs. We interviewed government 

officials, researchers, private employers, and trade associations or unions 

in each of the countries about their experiences with such policies and 

practices. We also visited Belgium to meet with officials from several 

European Union (EU) institutions, such as the European Commission and 

the European Foundation for the Improvement of Living and Working 

Conditions—organizations that provided a broader Europe-wide 

perspective on the selected policies and practices and current political 

environment across countries. 

To examine the change in the targeted groups’ employment following the 

implementation of the policies and practices, as well as to identify the 

factors that affected employees’ use of workplace benefits and the 

resulting workplace implications, we conducted an extensive literature 

review of workforce flexibility and training strategies in a range of 

developed countries. Our literature reviews focused on cross-national 

studies that examined our selected countries. To identify relevant studies 

for our research, we conducted database searches, spoke with U.S. and 

international academics, and spoke with knowledgeable U.S. agency 

officials. We selected studies that had been conducted within the past 

10 years, studies that included at least three of our selected countries, and 

studies that we determined were methodologically sound. Our review of 

these studies was limited to the extent that they were available in English.

These reviews provided information on the policies and practices in use, 

their target population and purpose, related laws and regulations, and any 

changes in employment following the implementation of the policies and 

practices. Additionally, we reviewed research reports from the 

Page 30 GAO-07-817 Women and Low-skilled Workers
Appendix I: Objectives, Scope and 

Methodology 

Organisation for Economic Co-operation and Development (OECD) and 

the European Commission (EC). 

We reviewed four other countries based on policies and practices they had 

implemented for our target groups. Information about these countries’ 

policies/practices came from extensive literature reviews and discussions 

with U.S. and foreign-based researchers. The selected countries were 

Ireland, which has experienced a large decline in unemployment and lowpaid work in the last decade and has a flexible labor market; France, 

which supports women’s employment in part through universal childcare; 

Sweden, which has had work-family policies in place for more than 

30 years; and New Zealand, which implemented legislation mandating that 

all employers provide a minimum number of paid sick days to workers as 

well as legislation mandating paid parental leave for certain employees. 

To provide context, we identified relevant national policies in the United 

States. However, we did not conduct a comprehensive review of similar 

workplace flexibility and training strategies in the United States, nor did 

we seek to determine whether other countries’ strategies could be 

implemented in the United States. 

Additionally, our review of related laws and regulations of other countries 

relied on secondary sources of analysis rather than independent analysis 

of foreign laws. Our review of the laws and regulations was limited by the 

extent that specific information from secondary sources was accessible 

and written in English. 

Page 31 GAO-07-817 Women and Low-skilled Workers
Appendix II: Selected Labor Market Statistics Appendix II: Selected Labor Market Statistics

Table 4: Educational Attainment Ages 25-64, 2004 

Average number of years 

in formal education

Percentage of

population with a

postsecondary 

educationa

Country Total Men Women Total

Canada 13.2 13.2 13.3 45

The U.S. 13.3 13.2 13.4 39

Sweden 12.6 12.4 12.8 35

Denmark 13.4 13.5 13.3 32

The Netherlands 11.2 11.4 11.1 29

Ireland 13.0 12.9 13.1 28

The UK 12.6 12.7 12.4 26

New Zealand 12.6 12.6 12.6 25

France 11.6 11.7 11.4 24

OECD Average 11.9 11.9 11.8 25

Source: Education at a Glance: OECD Indicators 2006 (OECD, 2006).

a

Postsecondary education, often referred to internationally as tertiary education, includes 

undergraduate and postgraduate education, as well as vocational education and training. 

Note: Educational attainment in these countries will vary by age group, i.e., whether individuals are

25-34, 35-44, 45-54, or 55-64. 

Table 5: Percentage of Full-time Workers Earning Less than Two-Thirds of the 

Median Wage of Full-time Workers 

Year 

Country Mid-1990s 2003-2004a

The UK 19.5 23.4

The U.S. 25.1 23.3

Canada 22.3 22.3

The Netherlands 11 16.6

New Zealand 14.5 14.7

France 13.9 14.0

Ireland 23.5 13.7

Denmark 7.3 9.3

Sweden 5.7 6.4

Source: OECD data, http://dx.doi.org/10.1787/184587347336. 

a

Data for France are for 2001. 

Page 32 GAO-07-817 Women and Low-skilled Workers
Appendix II: Selected Labor Market Statistics

Table 6: Public Expenditures on Training Programs 

Country

Public expenditures on training as 

a percentage of GDP, 2003-2004

Denmark 0.54

The Netherlands 0.36

Sweden 0.35

France 0.31

Ireland 0.18

New Zealand 0.18

The UK 0.13

Canada 0.12

The U.S. 0.05

Source: OECD Employment Outlook 2006: Boosting Jobs and Income (OECD, 2006). 

Note: The expenditures on training include those for institutional training, workplace training, 

integrated training, and special support for apprenticeship programs.

Table 7: Gross National Income, Per Capita, 2005 

Country

Gross national income per capita, 

purchasing power parity (international dollars)

The U.S. $42,000

Denmark $34,030

The UK $33,960

The Netherlands $32,970

Canada $32,770

Ireland $32,580

Sweden $32,440

France $30,540

New Zealand $25,450

Source: World Development Indicators Database, World Bank, Purchasing Power Parity (international dollars), 2007. 

Note: Purchasing power parity (PPP) conversion factors take into account differences in the relative

prices of goods and services and therefore provide a better overall measure of the real value of 

output produced by an economy compared to other economies. Because PPPs provide a better 

measure of the standard of living of residents of an economy than other measures, such as the Atlas 

method, they are the basis for the World Bank’s calculations of poverty rates. 

Page 33 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Table 8: Maternity Leave 

Country Length of leave Eligibility Payment Conditions 

Canada Length of leave for private employers 

governed by the provinces, which 

generally allow 17 weeks of unpaid leave.

Must generally have 

worked for the same 

employer for a 

continuous period that 

ranges from 13 weeks 

to 12 months. However, 

three provinces do not 

have this requirement. 

Payment of 55 percent 

of average insured 

earnings, up to yearly 

maximum earnings of 

$40,000, is available 

for a maximum of 

15 weeks for women 

who have worked for 

at least 600 insured 

hours in the last year. 

Payment can begin up 

to 8 weeks prior to the 

expected birth.

2-week waiting

period prior to 

receiving payment 

Denmark 18 weeks Must have been

employed for at least 

120 hours in the 

13 weeks prior to the 

leave. Women who are 

self-employed, have 

completed vocational 

training for a period of 

at least 18 months, are 

doing paid work

placement as part of a 

vocational training 

course, or are 

unemployed are also 

entitled to cash

benefits. 

Based on the hourly 

wage of the employee, 

up to a maximum. In 

2003, on average, the 

compensation rate 

was 60–70 percent of 

former earnings. 

Leave includes 

4 weeks before the 

expected date of 

confinement and 

14 weeks following 

confinement 

France 16 weeks of maternity leave for a 

woman’s first child, and 26 weeks for 

subsequent children 

Generally paid at full 

earnings for women 

with a minimum level 

of social insurance 

contributions or hours 

worked 

Ireland 26 weeks of maternity leave, and 

16 weeks of unpaid maternity leave 

Generally paid at 

80 percent of earnings, 

subject to a minimum 

and maximum 

payment, for women 

with a minimum level 

of social insurance 

contributions 

The Netherlands 16 weeks 100 percent of the 

daily wage, up to a 

maximum, which is 

paid by the general 

unemployment fund 

Leave generally

begins 6 weeks prior 

to the expected date 

of birth 

Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Page 34 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Country Length of leave Eligibility Payment Conditions 

New Zealand 14 weeks Unpaid leave for 

14 continuous weeks is 

available to women who 

do not meet minimum 

work eligibility 

requirements. 

100 percent of weekly 

pay, up to a maximum, 

is available to women 

who have worked at 

least 10 hours per 

week in the 6 or 

12 months preceding 

baby’s expected date 

of birth. 

Paid leave by 

women must be

taken at the same 

time as unpaid leave 

for which they are 

eligible. If a woman’s 

spouse of partner 

meets the eligibility 

criteria, the mother 

can transfer all or a 

part of this leave to 

them 

Sweden 12 weeks 80 percent of earnings Leave is for 6 weeks 

before and 6 weeks 

following the birth of 

a child 

UK 52 weeks 90 percent or less of 

weekly average

earnings is available 

for 39 weeks to

women whose 

earnings qualify for the 

national insurance 

program and who have 

worked for the same 

employer continuously 

for 26 weeks prior to 

the 15th week before 

the child is due. 

Women who do not 

meet these 

requirements may 

receive payment of 

90 percent or less of 

earnings for 39 weeks 

through a maternity 

allowance 

Payment period for 

statutory maternity 

pay/allowance is 

39 weeks 

Page 35 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Country Length of leave Eligibility Payment Conditions 

U.S. 12 weeks Must have worked for 

employer for at least 

1 year, and for over 

1,250 hours during the 

last year. 

Unpaid Allows eligible

employees to take 

up to 12 weeks of 

job-protected leave 

in a 12-month period 

for qualifying 

reasons, including 

the birth or 

placement of a child 

for adoption or foster 

care, the employee’s 

own serious health 

condition, or to care 

for a qualifying 

family member with 

a serious health 

condition. Leave for 

the birth or 

placement of a child 

must conclude within 

12 months of the 

birth or placement. 

Source: GAO analysis of OECD, European Commission, and government and related Web sites 

Note: We were unable to identify all recent or available information for each of the countries we

examined. 

Page 36 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Table 9: Paternity Leave 

Country Length of leave Eligibility Payment Conditions

Canada See table 10 on parental leave as 

paternity leave was largely replaced 

by this leave in the 1990s 

Denmark 2 weeks Employed or 

self-employed 

In 2003, on average, the 

compensation rate was 

60-70 percent of former 

earnings 

Must be taken 

continuously within 

14 weeks following the 

birth 

France 11 days, or 18 days, in the case of a 

multiple birth 

Generally paid at full 

earnings for fathers with 

a minimum level of 

social insurance 

contributions or hours 

worked 

Must be taken 

continuously 

Ireland No legal entitlement to paternity 

leave 

The Netherlands 2 days Employer pays 

100 percent of wages 

New Zealand 1 or 2 weeks One week unpaid leave 

is available to partners 

with 6 months of eligible 

service and two weeks 

unpaid is available to 

those with 12 months of 

eligible service

Unpaid 

Sweden 10 working days Paid at 80 percent of 

earnings 

UK 1 or 2 weeks Must have worked for 

the same employer 

continuously for 

26 weeks prior to the 

15th week before the 

child is due 

90 percent or less of 

average weekly

earnings for those who 

qualify for the national 

insurance program. 

Those who do not 

qualify based on

earnings may be eligible 

for other income 

support. 

Leave must be

completed within 

56 days after the child’s 

birth 

Page 37 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Country Length of leave Eligibility Payment Conditions

U.S. As with maternity leave, the Family 

and Medical Leave Act (FMLA) 

provides 12 weeks 

Must have worked for 

employer for at least 

one year, and for over 

1,250 hours during the 

last year. 

Unpaid Allows eligible

employees to take up to 

12 weeks of jobprotected leave in a 

12-month period for 

qualifying reasons, 

including the birth or 

placement of a child for 

adoption or foster care, 

the employee’s own 

serious health condition, 

or to care for a 

qualifying family

member with a serious 

health condition. Leave 

for the birth or 

placement of a child 

must conclude within 

12 months of the birth 

or placement. 

Source: GAO analysis of OECD, European Commission, and government and related Web sites 

Note: We were unable to identify all recent or available information for each of the countries we

examined. 

Page 38 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Table 10: Parental Leave 

Country Length of leave Eligibility Payment Conditions

Canada Duration of leave ranges from 35 to 

52 weeks, and is determined by the 

province. 

Must generally have 

worked for the same 

employer for a 

continuous period that 

ranges from 13 weeks 

to 12 months. However, 

three provinces do not 

have this requirement. 

Payment of 55 percent 

of average insured 

earnings, up to yearly 

maximum earnings of 

$40,000, is available for 

a maximum of 35 weeks 

for parents with at least 

600 insured hours in the 

last year. 

2-week waiting period 

prior to receiving 

payment 

Benefits can be claimed

by one parent or shared

between the two, but 

cannot exceed a 

combined maximum of 

35 weeks. 

When combined with 

maternity benefits, 

payment is available for 

up to 50 weeks.

Denmark 32, 40, or 46 weeks 60 percent of a worker’s 

unemployment benefit, 

as reported in 2003 

After the 14th week 

following the birth of a 

child, parents share this 

leave, which can be split 

or postponed, until the 

child turns 9. If parents 

choose the 40- or 

46-week leave, their 

benefits are frozen to 

the amount paid for the 

32-week leave.

France Family entitlement to leave until a 

child reaches 36 months 

Eligible for payment 

with two children if 

parents have worked for 

at least 2 of 5 years 

preceding birth; eligible 

for payment for three or 

more children if parents 

have worked for 2 years 

at any time in the 

10 preceding birth 

Flat-rate benefit

payment within 

6 months of maternity 

leave for one child, or 

immediately for 2 or 

more children 

Leave can be taken by 

the mother or father, or 

can be shared following 

one another 

Ireland 14 weeks Generally must have 

been working for 

employer for one year 

Unpaid Both parents have a 

separate entitlement to 

14 weeks of leave, 

which may be used until 

the child turns 8, and 

can be taken 

continuously or in 

separate blocks. 

If the child has a 

disability, the 14 weeks 

of leave can be used 

until the child has 

reached age 16. 

Page 39 GAO-07-817 Women and Low-skilled Workers
Appendix III: Maternity, Paternity, and 

Parental Leave Provisions 

Country Length of leave Eligibility Payment Conditions

The Netherlands Amount of leave is based on 

working hours and is calculated on a 

part-time basis over 13 weeks

Must have worked for 

the same employer for 

at least one year 

Unpaid Must be used before a 

child turns 8. With 

agreement from an 

employer, the leave can 

be split into a maximum 

of three parts. 

New Zealand 52 weeks, less any maternity leave 

(maximum of 14 weeks) 

Must have worked for 

the same employer for a 

minimum of 12 months 

Unpaid, less any paid 

maternity leave

(maximum of 14 weeks) 

Leave can be taken 

simultaneously or 

consecutively and can 

be shared between 

parents where they are 

both eligible. 

Sweden 480 days per family For 390 days, 

80 percent of previous 

income, up to a 

maximum, and a fixed 

daily rate for the 

remaining 90 days. 

Parents who were not 

employed before the 

birth of a child receive a 

flat daily rate for 

390 days followed by a 

lesser amount for the 

remaining 90. 

Of the 480 days, 

60 days are set aside 

exclusively for each 

parent, and cannot be 

transferred while the 

remaining days can be 

shared. 

Paid leave must be 

taken before a child 

turns 8 and can be 

taken continuously or in 

blocks. 

UK 13 weeks, or 18 weeks for parents 

of children with disabilities 

Must have completed a 

year of continuous 

service with current 

employer 

Unpaid Leave can be taken until 

the child turns 5 and in

short or long blocks, 

with the consent of an 

employer 

U.S. As with maternity leave, the Family 

and Medical Leave Act (FMLA) 

provides 12 weeks 

Must have worked for 

employer for at least 

1 year, and for over 

1,250 hours during the 

last year. 

Unpaid Allows eligible 

employees to take up to 

12 weeks of jobprotected leave in a 

12-month period for 

qualifying reasons, 

including the birth or 

placement of a child for 

adoption or foster care, 

the employee’s own 

serious health condition, 

or to care for a 

qualifying family

member with a serious 

health condition. Leave 

for the birth or 

placement of a child 

must conclude within 

12 months of the birth or 

placement. 

Source: GAO analysis of OECD, European Commission, and government and related Web sites 

Note: We were unable to identify all recent or available information for each of the countries we

examined. 

Page 40 GAO-07-817 Women and Low-skilled Workers
Appendix IV: 

A

GAO Contact and Staff 

cknowledgments 

Page 41 GAO-07-817 

Appendix IV: GAO Contact and Staff 

Acknowledgments 

Sigurd R. Nilsen, Director, 202-512-7215, nilsens@gao.gov

Diana Pietrowiak, Assistant Director; Gretta L. Goodwin, Senior 

Economist; Avani Locke, Senior Analyst; and Seyda Wentworth, Senior 

Economist made significant contributions to all phases of this report. 

Stephanie Toby, Analyst, made significant contributions to data collection, 

data analysis, and message and report development. Sheila R. McCoy 

provided legal assistance; Gregory Wilmoth provided methodological 

assistance; and Charles Willson, Communications Analyst, assisted with 

report development. 

GAO Contact 

Acknowledgments 

Women and Low-skilled Workers
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