Washington Policy Watch

News and perspective on public policy issues affecting Washington's economy and quality of life, brought to you by the Economic Opportunity Institute.

Raise your hand if you want to lose your job to care for someone you love

Paid leave isn’t only crucial for ensuring parents can care for their children – it’s also important for adult children, an increasing number of whom are caring for an elderly relative. But while having time to care for a loved one is important to nearly all of us, not everyone can do it without risking part of their paycheck or even their job.

For example, when parents can’t take a paid sick day, children are less likely to go to the doctor and more likely to go to school sick. But a 2003-2004 study indicated that only 36% of American children in families below 200% of the federal poverty line had a parent with sick leave, compared with 81% of those above 200% of the poverty line.

At the other end of the age spectrum, this 2008 study shows nearly 1 in 5 American workers provided unpaid care to an elderly person that year, and more than 4 in 10 provided care in the previous five years. But low-income families living from paycheck-to-paycheck are the least likely to have paid sick days available on the job. In the U.S., just 2 in 10 of the lowest paid workers had access to paid sick leave in 2010, compared to 84% of the highest earners.

Given their importance to so many people, it’s no surprise to see so many people “raise their hands” for a minimum paid sick days standard. A 2008 poll from the National Opinion Research Center at the University of Chicago found:

  • 94 percent of self-identified liberals and 81 percent of self-identified conservatives believed that paid sick day should be a basic workplace right.
  • 86 percent of people surveyed said they favor a basic paid sick day policy.
  • 77 percent of respondents believed that paid sick days were very important.
  • 63 percent of workers who did not have access to paid sick leave said they were concerned about not having paid sick days.
  • 46 percent of respondents said they are more likely to vote for a candidate who supports paid sick days.

Filed under: paid sick days, work and family, , , , , , ,

So does this mean all the restaurants in Australia are moving to the U.S.?

Washington state grabbed headlines this year with a minimum wage of $9.04/hour, thanks to a voter-approved automatic cost-of-living adjustment enacted in 1998. In 32 other states, the federal minimum – just $7.25/hour – applies.* But if it were adjusted for inflation using the Consumer Price Index (CPI), the federal minimum would be $9.16 today.

For America’s economy to function well over the long run, wages have to keep up – at the very least – with the cost of living. But inflation isn’t the only way to measure how well wages are keeping up with the economy, according to Salvatore Babones:

…the Social Security Administration uses something called the Average Wage Index (AWI)…[which is] an index of the average wages paid in any given year…[because] the CPI adjusts for changes in the cost of living, but doesn’t adjust for changes in quality of life. Simply put, we expect people to live better in 2012 than they did in 1974.

Adjusted for wage growth using the Average Wage Index (AWI) [the federal minimum wage] would be $10.74.

That said, even wage growth doesn’t tell the whole story, because wages have not kept pace with rising economic prosperity in America. Here’s Babones again: Read the rest of this entry »

Filed under: minimum wage, , , , , , , , , , , , , , ,

It’s tough for a kid to catch up when they start out behind

Following up yesterday’s post about the the big payoffs for intensive early learning programs, here’s another piece of the puzzle from Kevin Drum, excerpted from Mother Jones:

The chart on the right compares four big English-speaking countries on a single measure: vocabulary test scores of five-year-olds. You’d expect that children of highly educated parents would do well and children of poorly educated parents would do badly. And you’d be right. On average, the children of poorly educated parents have both genetic and environmental disadvantages, so it’s no surprise that they do worse than average.

But in the United States they do a lot worse. The Pew chart is normalized so that children of middle-educated parents score in the 50th percentile and other children are compared to that standard. In Canada, the least-advantaged kids manage to score at the 37th percentile. In the United States they score at only the 27th percentile.

Now, it’s pretty unlikely that Canadian kids with low-educated parents are genetically unluckier than American kids with low-educated parents. Genes may account for some of the overall difference between rich and poor kids, but not for the difference between Canada and the U.S. That has a lot more to do with how we raise our kids and what kind of attention we give them at early ages. On that score, the United States does wretchedly. We simply don’t give our poorest kids a fair start in life.

Read more from Mother Jones »

Filed under: early learning, , , ,

Four new economic development policies to help us recover from the recession

Stan Sorscher

Stan Sorscher, EOI Board Member

Guest post by Stan Sorscher (cross-posted from Huffington Post)

Let’s look at public policies for economic development that help us recover from the recession.

In one view of economic development, the role of government is to “make business succeed.” In this view, government should get out of the way and let markets find the most efficient outcome.

An alternative view of economic development is that government policies should raise our standard of living. In this view, government plays an active role in devising trade and industrial policies that attract investment, build industrial capacity, and create good jobs that build the middle class. And make business succeed.

To be sure, markets are powerful and efficient, but markets fail. In particular, markets fail to serve non-economic interests — not just the environment, human rights, labor rights, and public health, but markets also under-invest in R&D, education, physical infrastructure and social safety nets.

Globalization has sharpened the difference in these two approaches, by de-coupling investor and business interests from the public interest. If investors are global in their outlook, then the interests of America dim from view.

In a global economy where national boundaries are blurred, we need to think about trade and industrial policies that work for America. A year ago, I mentioned 4 policies that would help reconnect the interests of investors with public interests and communities. Here are four more.

Read the rest of this entry »

Filed under: EOI, state economy, , , , , , , , , , , , , , , ,

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