Exploring the disparity in parental benefits worldwide, the podcast highlights the costly challenges of raising kids in the US. It contrasts the lack of federal support in the US with other countries offering cash incentives for having children. The host goes benefits shopping in Sweden, Singapore, South Korea, Estonia, and Canada to find the best deal for pregnancy. It discusses South Korea's aggressive parental benefits programs and Canada's affordable childcare initiatives, hinting at a logical future for supermarket pricing.
Countries like Singapore offer cash bonuses for babies and government-subsidized childcare to address demographic concerns and encourage childbirth.
Sweden's policies promote gender equality by offering long parental leave, subsidized childcare, and incentives for men to take parental leave, resulting in high labor force participation and a smaller gender pay gap.
Deep dives
Singapore's Pro-Natalist Policies
Singapore offers cash bonuses for babies, 3 months of parental leave, government-subsidized childcare, and addresses demographic concerns by incentivizing childbirth. The country experienced a shift in policy to encourage more babies due to declining birth rates, with policies aimed at increasing fertility rates.
Sweden's Gender Equality Focus
Sweden implemented long parental leave, subsidized childcare, and gender equality-centered policies to promote women's participation in the workforce. Efforts to improve gender equality, including incentives for men to take parental leave, have contributed to high labor force participation and a smaller gender pay gap.
Canada's Affordable Child Care Initiative
Canada introduced $10 a day childcare, leading to increased women's workforce participation and economic benefits. The country views affordable childcare as an investment, offering a more supportive environment for families and contributing to a strong economy.
Estonia's Repopulation Strategy
Estonia offers 18 months of parental leave at full pay, aiming to repopulate the country with more Estonians. Pro-natalist policies include a speed benefit to encourage quick childbirth after the first, contributing to an increase in fertility rates and achieving demographic goals.
It is so expensive to have a kid in the United States. The U.S. is one of just a handful of countries worldwide with no federal paid parental leave; it offers functionally no public childcare (and private childcare is wildly expensive); and women can expect their pay to take a hit after becoming a parent. (Incidentally, men's wages tend to rise after becoming fathers.)
But outside the U.S., many countries desperately want kids to be born inside their borders. One reason? Many countries are facing a looming problem in their population demographics: they have a ton of aging workers, fewer working-age people paying taxes, and not enough new babies being born to become future workers and taxpayers. And some countries are throwing money at the problem, offering parents generous benefits, even including straight-up cash for kids.
So if the U.S. makes it very hard to have kids, but other countries are willing to pay you for having them....maybe you can see the opportunity here. Very economic, and very pregnant, host Mary Childs did. Which is why she went benefits shopping around the world. Between Sweden, Singapore, South Korea, Estonia, and Canada, who will offer her the best deal for her pregnancy?