Women and Low-Skilled Workers: Other Countries' Policies and Practices That May Help These Workers Enter and Remain in the Labor Force
Published: 2007-06-14T00:00:00

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Highlights:
section_title: Why GAO Did This Study
paragraphs: 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 low-skilled 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.
section_title: What GAO Found
paragraphs: 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. Cross-national 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.

section_title: Letter
paragraphs: Increasing retirements and declining fertility rates, among other factors,  Increasing retirements and declining fertility rates, among other factors,  could affect the labor force growth in many developed countries. To  could affect the labor force growth in many developed countries. To  maintain the size and productivity of the labor force, many governments  maintain the size and productivity of the labor force, many governments  and employers in developed countries have introduced strategies to keep  and employers in developed countries have introduced strategies to keep  workers who face greater challenges in maintaining jobs and incomes,  workers who face greater challenges in maintaining jobs and incomes,  such as women and low-wage/low-skilled workers, in the workforce  such as women and low-wage/low-skilled workers, in the workforce  throughout their working lives. To help women remain in the labor force  throughout their working lives. To help women remain in the labor force  consistently, many governments and employers have established leave  consistently, many governments and employers have established leave  policies and flexible working arrangements to assist women in  policies and flexible working arrangements to assist women in  simultaneously managing responsibilities both inside and outside the  simultaneously managing responsibilities both inside and outside the  workplace. At the same time, rapid technological change and global  workplace. At the same time, rapid technological change and global  competition have limited the employment opportunities for some low- competition have limited the employment opportunities for some low- skilled workers. This development has drawn attention to the need for  skilled workers. This development has drawn attention to the need for  investing in education and training to help low-skilled workers find jobs  investing in education and training to help low-skilled workers find jobs  and remain in the labor force.  and remain in the labor force.
Because the experiences of other countries may provide useful  Because the experiences of other countries may provide useful  information for U.S. policymakers, you requested that we examine the  information for U.S. policymakers, you requested that we examine the  policies and practices in other developed countries that may attract and  policies and practices in other developed countries that may attract and  retain individuals who otherwise might not be in the workforce, or who  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.  might drop in and out of the labor force more than other groups.  Specifically, you asked us to (1) describe the policies and practices  Specifically, you asked us to (1) describe the policies and practices  implemented in other developed countries that may help women and low- implemented in other developed countries that may help women and low- wage/low-skilled workers enter and remain in the labor force; (2) examine  wage/low-skilled workers enter and remain in the labor force; (2) examine  the change in the targeted groups’ employment following the  the change in the targeted groups’ employment following the  implementation of the policies and practices; and (3) identify the factors  implementation of the policies and practices; and (3) identify the factors  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 low- wage/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 foreign- based 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.
subsections: section_title: Background
paragraphs: 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  workers manage both work and other life responsibilities. 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. 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.
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. The law applies to private  companies with 50 or more employees, and all federal, state, and local  government agencies. 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.
Some state laws provide greater family or medical leave rights than the  federal law. In July 2004, California became the first state in the country  to offer a comprehensive paid family leave program. 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.
The federal government also provides childcare subsidies for certain low- income families, and tax breaks for most parents, both to support their  ability to work and to balance work-family responsibilities. Under  programs funded by the Child Care and Development Fund (CCDF),  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. 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) 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- 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); 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. EU directives are  generally binding in terms of the results to be achieved, 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. For example, countries can request money  from the European Social Fund (ESF) for public or private programs that  improve people’s skills and employability.
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   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).
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).
section_title: Countries Have Various Policies and Practices That May Help Some Women and Low-Wage/Low- Skilled Workers Enter and Remain in the Labor Force
paragraphs: 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.
subsections: section_title: Family Leave Policies Differed In Four Major Ways, Including Eligibility Requirements and Length, Payment, and Flexibility
paragraphs: 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  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.
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. 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  generally equal to 90 percent or less of their average weekly earnings. 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. 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.
section_title: Flexible Working Arrangements Help Employees Balance Work and Private Responsibilities
paragraphs: A few countries have developed national policies that promote flexible  work opportunities, apart from leave, that may help women and low- wage/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. 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. 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.
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  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.
section_title: Childcare Policies Assist Working Parents
paragraphs: 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.  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  expected to pay about one-third of childcare costs, according to a report  by the European Commission (see table 3).
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. In addition, a Canadian union  negotiated employer subsidies to reimburse some childcare expenses for  its members, according to union representatives.
section_title: Training Programs Can Be Targeted at the Unemployed or Low- Skilled Workers
paragraphs: 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  integrated employment and skills service, among other things. 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. 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.
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. 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.
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  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.
section_title: Although Certain Workplace Policies Are Associated with Increased Participation in the Labor Force, in General, Effects Are Not Definitive
paragraphs: 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.
subsections: section_title: Childcare and Paid Family Leave Are Associated with an Increase in Labor Force Participation
paragraphs: 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. Additionally, the European  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 cross- national study.
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. 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.  Furthermore, paid leave set aside for fathers has allowed Swedish mothers  to return to work more quickly since fathers are encouraged to share in  the caring duties, according to one study.
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.
section_title: The Effects of Most Workplace Policies and Practices, Including Training, Are Not Definitive
paragraphs: 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. 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  participants’ employability. 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 short- term 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  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. 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.
section_title: While Several Factors Affect Uptake, Employees’ Use of Workplace Benefits Can Have Implications for Employers and Employees
paragraphs: 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.  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. 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.
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  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. 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  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. 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.
section_title: Concluding Observations
paragraphs: 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.
subsections: section_title: Agency Comments
paragraphs: 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.
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  Affairs may be found on the last page of this report. Key contributors to  this report are listed in appendix IV.
section_title: Appendix I: Objectives, Scope and Methodology
paragraphs: 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  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 low- paid 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.
section_title: Appendix II: Selected Labor Market Statistics
paragraphs: Appendix II: Selected Labor Market Statistics The U.S.
The U.S.
The U.S. purchasing power parity (international dollars)
The U.S.
section_title: Appendix III: Maternity, Paternity, and Parental Leave Provisions
paragraphs: Appendix III: Maternity, Paternity, and  Parental Leave Provisions examined.
section_title: Appendix IV: GAO Contact and Staff Acknowledgments
subsections: section_title: Acknowledgments
paragraphs: 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.
section_title: Related GAO Products
paragraphs: An Assessment of Dependent Care Needs of Federal Workers Using the  Office of Personnel Management’s Survey. GAO-07-437R. Washington,  D.C.: March 30, 2007.
Highlights of a GAO Forum: Engaging and Retaining Older Workers.  GAO-07-438SP. Washington, D.C.: February 2007.
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  22, 2006.
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.: February 24,  2006.
Social Security Reform: Other Countries’ Experiences Provide Lessons  for the United States. GAO-06-126. Washington, D.C.: October 21, 2005.
Child Care: Additional Information Is Needed on Working Families  Receiving Subsidies. GAO-05-667. Washington, D.C.: June 29, 2005.
Workforce Investment Act: Substantial Funds Are Used for Training, but  Little is Known Nationally about Training Outcomes. GAO-05-650.  Washington, D.C.: June 29, 2005.
Highlights of a GAO Forum: Workforce Challenges and Opportunities for  the 21st Century: Changing Labor Force Dynamics and the Role of  Government Policies. GAO-04-845SP. Washington, D.C.: June 2004.
Women’s Earnings: Work Patterns Partially Explain Difference between  Men’s and Women’s Earnings. GAO-04-35. Washington, D.C.: October 31,  2003.
Older Workers: Policies of Other Nations to Increase Labor Force  Participation. GAO-03-307. Washington, D.C.: February 13, 2003.
Older Workers: Demographic Trends Pose Challenges for Employers and  Workers. GAO-02-85. Washington, D.C.: November 16, 2001.