MAKING PROGRESS ON PARENTAL StockImageFactory.com/Shutterstock BENEFITS IN LOW- AND MIDDLE-INCOME COUNTRIES FEBRUARY 2025 HIMANSHI JAIN, AMBIKA SHARMA, AND AT A GLANCE: LUDOVICA CHERCHI A parental benefits framework with six key elements was developed to carry out cost-effective diagnostic assessments The issue in low- and middle-income countries where coverage and information on parental benefits are limited. The framework was The World Bank estimates that closing the gender gap in applied to Argentina and Nepal; it was complemented by a survey employment would increase long-run gross domestic product to assess access, awareness, need, and willingness to pay for (GDP) per capita by 20 percent (Pennings 2022). Realizing this parental benefits. This study makes four significant contributions achievement, however, depends not only on removing gender to the emerging topic of parental benefits: barriers to employment but also and most emphatically on l By surveying countries at different income levels, and improving the quality of women’s employment. including men and women in both formal and informal employment, this work extends the research that has largely Women’s labor force participation has been stagnant since focused on advanced economies with a high share of formal 1990, at around 53 percent for women compared to 80 percent employment. for men, with the largest gaps in lower-middle-income coun- l By inquiring about willingness to pay for parental benefits via tries (World Bank 2023). Moreover, as noted by the World Bank’s mandatory or voluntary schemes, the study provides evidence most recent gender strategy, “Women in the labor force are half to policy makers on a potential source of cost sharing. as likely as men to have a full-time wage job, their jobs tend to l By asking parents about access and nonparents about aware- be more vulnerable, and they earn 77 cents for every dollar men ness of existing benefits, the study reveals implementation and information gaps where they exist. earn” (World Bank 2023, 2). l By developing a framework and associated questionnaire, A significant tool for addressing the multiple constraints women the study provides useful resources countries can use for a light-touch assessment to identify quick policy wins or as an face in the labor market is a comprehensive parental bene- analytical tool to initiate development of a comprehensive fit policy. Parental benefits or more broadly family-friendly parental benefits strategy. 2 M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S policies can have far-reaching benefits. Notably, such lack thereof) influenced women’s labor market choices, policies both improve women’s attachment to the labor childcare responsibilities, and well-being. market and lead to better outcomes for men, children, families, and societies (Schulz 2020). The study design Designing and financing a well-crafted parental policy requires careful balancing of costs, coverage implications, As a starting point from which to evaluate each country’s potential labor market distortions, and ease of imple- parental benefit programs and policies, the study team mentation. For example, a mandatory payroll-financed designed a parental benefits framework with six key ele- maternity benefit might actually hurt female employment, ments (figure 1). These elements are important factors in depending on how it is implemented. If the mandate only supporting parents—particularly women—to thrive in their applies for female employees, firms would be hesitant workplaces, generating positive economic and social gains to hire women of childbearing age. Alternatively, if the for societies and economies. For example, leave for both International Labour Organization’s (ILO’s) recommended parents to allow sharing of newborn care responsibilities is maternity benefit of 14 weeks was to be paid solely by a core element of the framework, given the evidence in the the employer, it could create a disincentive for firms to literature that this measure supports gender equity and is hire women. In low- and middle-income countries where beneficial for both women and men (Cascio, Haider, and formal employment is low to begin with; imposing a high Nielsen 2015; Ekberg, Eriksson, and Friebel 2013; Johansson payroll contribution to finance a generous benefit package 2010). The desk research on this factor involved looking at laws and regulations in Argentina and Nepal to identify the leave that is available to parents in the country (men and Fostering a successful parental benefits policy women, in formal and informal employment), its duration, the mechanisms of enforcement, and so on.1 Stakeholder Despite the fiscal, administrative, and monitoring consultations complemented the desk research when challenges associated with parental benefits, prog- information was scarce or not easily available. ress can be made by A second component of the study was survey-based l Complementing mandates with nudges; data collection. The survey instrument used included l Designing voluntary social insurance bene- modules for each element in the parental benefits frame- fit packages that are attractive to the informal work, along with modules on perception and willingness sector; to pay. Together, the desk research and survey allowed assessment of official versus actual policies in Argentina l Improving data interoperability to strengthen and Nepal—that is, a comparison of legislated and imple- compliance; mented actions—providing insights on access, awareness, l Partnering with the private sector and civil soci- implementation gaps, and the unmet parental benefit ety; and needs of women and men in these countries. l Engaging men as change-makers. The study posed a broad range of questions to a diverse group of workers across two geographically and cultur- can also pose a cost to formality. ally distinct countries. In Argentina, a phone survey was conducted with a sample of 832 individuals and targeted This note compiles findings from a study undertaken in those ages 18–45 living in major cities. In Nepal, an in-per- two countries—one low income (Nepal) and one middle son survey was done with a sample of 1,000 urban area income (Argentina)—to examine the take-up of existing employed men and women, including residents of the parental benefits and how parental benefit policies (or the capital city Kathmandu and 13 other towns and periurban M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S 3 F I G U R E 1 : PA R E N TA L B E N E F I T S F R A M E W O R K C O M P O N E N T S Parental leave to share newborn Cash benefits for loss in income Medical benefits for pregnancy care responsibilities during the parental leave period and childbirth costs Breastfeeding and other family- Nondiscrimination Affordable childcare friendly provisions at the at the to facilitate place of work place of work return to work areas. Tables 1 and 2 provide details on the split between a broader coverage of leave benefits, primarily because formal/informal, parents/nonparents, and male/female social security—administered by the National Social for the two surveys. Security Administration (Administración Nacional de la Seguridad Social—ANSES)—has been in existence since Note that the sampling for the survey had two key limita- 1991, and the labor market boasts a higher share of formally tions: (1) respondents were not nationally representative; employed people who are mandated to contribute to it. In and (2) in Nepal, only employed workers were interviewed, contrast, Nepal’s Social Security Fund (SSF) was only set up thereby excluding women who dropped out of the labor in 2019. force after childbirth. Future work in this area will ben- efit from a focused research questionnaire and sample A unique feature in both countries is that they have made selection. efforts to cover those in the informal sector, albeit using different financing methods and administrative means. In Argentina, tax-financed social assistance provides mul- The findings tiple flat benefits to those in the informal sector. In Nepal, a voluntary social insurance scheme for informal workers The desk research revealed that both Argentina and was introduced in August 2023 which includes a maternity Nepal have many of the elements of the parental bene- benefit. Also included in the package is an old age pension; fits framework but exhibit varying coverage, compliance, and health, disability, and survivor benefits (Sharma and financing mechanisms, and administration. Argentina has Jain 2025). 4 M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S TA B L E 1 : S A M P L E B R E A K D O W N I N A R G E N T I N A Formal sector Informal sector Not working Sex Parents Nonparents Parents Nonparents Parents and nonparents Total Male 62 59 14 11 17 163 Female 198 120 121 53 177 669 Total  260 179 135 64 194 832 Note: Seventy-seven percent of the respondents were employed at the time of the survey. TA B L E 2 : S A M P L E B R E A K D O W N I N N E PA L Formal sector Informal sector Sex Parents Nonparents Parents Nonparents Total Male 112 38 69 30 249 Female 336 114 226 75 751 Total 448 152 295 105 1,000 Note: All respondents were employed at the time of the survey. Argentina also reflects more integration across programs legislated leave benefits.2 However, both countries have like health insurance and social security, which allows a large disparity between the number of leave days them to provide a comprehensive set of benefits to par- for fathers versus mothers. This risks an implicit bias in ents. More detailed and disaggregated data reporting by hiring women, because employers must pay benefits institutions in Argentina, notably on coverage and financ- out of pocket for a longer duration (in Nepal) and be ing, would help in evaluating these programs and assessing prepared for longer periods of absence when they are their cost-effectiveness. This in turn could allow for a hiring women of childbearing age. Furthermore, while scale-up of effective programs and the use of government family-friendly workplaces and protection against dis- resources to target those most vulnerable. crimination are legislated, little can be said about their implementation or applicability in small firms and in The private sector is responsible for providing family-friendly the informal sector without adequate monitoring. The workplaces in both countries but, without a monitoring survey results also reveal access gaps for the formal mechanism in place, there is a risk that small and medi- sector. These gaps are higher in Nepal, where the social um-size firms will show poor compliance—or worse, be security agency is more nascent. In Nepal, only 7 in 10 disincentivized to hire young women. parents in formal employment took parental leave at the birth of their last child. Moreover, only 52 percent of Table  3 compares the key framework elements across the formal sector employees in the sample were cur- the two countries. Following are highlights of the study’s rently contributing to the SSF; their main reasons for findings. not participating were lack of awareness of the scheme (36 percent) and their employers not participating in l Design of existing benefits is suited for those in the the SSF (20 percent). In Argentina, 77 percent of eligi- formal economy, but there remains scope for improve- ble women took maternity leave for an average of 95.5 ment in access and equity. Formal sector workers in days, receiving 70  percent of their salary during leave. both countries are mandated to pay social security For men, 82 percent took paternity leave, averaging 9.5 contributions, part of which goes toward financing their days, with an average 89 percent salary compensation. M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S 5 TA B L E 3 : C O M PA R I N G E X I S T I N G PA R E N TA L B E N E F I T S I N T H E T W O S T U D Y C O U N T R I E S Benefit Argentina Nepal Formal workforce: 98 days of maternity leave; 15 days of Formal workforce: Maternity leave of 90 days in the private paternity leave. sector and 100 days in the public sector; paternity leave of 2 days in the private sector and 15 days in the public sector. Informal workforce: Can obtain coverage for 98 days of maternity leave by self-contributing to newly launched Parental leave to share Informal workforce: No statutory leave entitlement. voluntary social insurance scheme. newborn care responsibilities Formal workforce: 100% of salary paid during maternity Formal workforce: 60 of the 98 days to be covered at full leave funded by social security contributions (deficit covered base salary by employers; the remaining 38 days to be by state), plus a prenatal allowance for eligible contributors. covered at a partial base salary by the contributory social insurance scheme. Cash benefits for loss in Informal workforce: Pregnancy allowance paid as a flat income during the parental rate on meeting health check conditions under the Sumar Informal workforce: Income replacement set as a partial leave period Program. percentage of the minimum wage. Formal workforce: Covered through employer-provided health insurance or Obras Sociales. The social insurance scheme provides coverage for prenatal visits, childbirth expenses, and infant care as well as a one- Informal workforce: Public health care via the Sumar time child allowance cash benefit per child for all those who Medical benefits for Program and cash transfers from Plan 1000 días, conditional contribute to the scheme (mandatory or voluntary). pregnancy and childbirth on receiving services from the Sumar Program. costs Workplaces need to make breastfeeding arrangements during office hours for up to two years after the birth of the child of a female employee. Employers are obliged to engage pregnant employees in work that does not lead to adverse effects on their health. Breastfeeding laws apply, but lack enforceability in informal settings. Employers are required to provide for an additional Breastfeeding and other 30-minute rest per day to new mothers within regular working family-friendly provisions at hours. the place of work No enforcement mechanism is in place and, with the informal workforce accounting for over 90% of those employed, these provisions apply to a relative handful of female workers. The labor act provides the right to remedy for workers facing Nondiscrimination laws theoretically apply, but enforcement discrimination. However, there are no provisions specifically mechanisms are weak for informal workers. prohibiting the dismissal of pregnant workers. Nondiscrimination at the place of work Limited access to public childcare; low enrollment rates for The labor law stipulates that workplaces with more than 50 children under age 3. women should provide for childcare rooms or centers. Affordable childcare to facilitate return to work Sources: Cherchi and Jain 2025; Sharma and Jain 2025; 6 M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S l Unless parental benefits extends to those in the security to finance maternity benefits was particularly informal sector, most women will be left out. In both notable among informal sector workers. The study Argentina and Nepal, women were more likely to be in Nepal used the design of the newly launched vol- employed in the informal sector. In Argentina, women 3 untary scheme—which provides a package of a flat in the sample were 18 percentage points more likely maternity benefit for 90  days along with health, acci- to be employed in the informal sector than were men; dent, and old-age benefits—to ask respondents how were less frequently employed in paid jobs (65 percent much they would be willing to contribute monthly for compared to 91  percent of male parents); and were a scheme with such benefits. Forty-seven percent said more commonly engaged in household duties, study- they would be willing to pay NPR 1,000 (about $7.15) per ing, or training. The informal sector in Nepal is large, month.4 Of the remaining 53  percent, most reported comprising 84.6 percent of the total employed popu- they would be willing to pay at least NPR  100 (about lation and 90.5 percent of employed women (Khanal $0.71) per month, signaling a broader demand for the 2024). This suggests that unless the design, adminis- scheme. Government matching contributions targeted tration, and financing of the core elements of Nepal’s to those most vulnerable or a modest package of ben- parental benefits package consider the distinct charac- efits to begin with could bridge the affordability gap. teristics of those in nonstandard employment, national coverage of these benefits will be low. l Providing parental benefits could improve individual well-being and finances. Comprehensive and predict- l Workers are willing to make social security contri- able parental benefits for workers could help families butions for state-provided parental benefits. Survey smooth consumption and pay for expenses associated respondents felt the state played an important role with childbirth while also improving the health and in providing parental benefits. A promising finding in well-being of families and children. The survey in Nepal both Argentina and Nepal is the willingness of respon- found that parents in the informal economy relied on a dents to pay contributions in exchange for receiving mix of their own savings (67 percent), spouse’s earnings these benefits. In Argentina, over half of the respon- (61 percent), borrowing money (28  percent), or taking dents believe that the state should provide benefits help from their social network (21 percent) to pay for for parents with children under age 14, with 74 percent childbirth and associated expenses. In Argentina, when willing to contribute to social security to guarantee asked about how having access to parental bene- the benefits. In Nepal, the willingness to pay for social fits could improve the well-being of the family, about 36  percent felt it would improve a child's care, about 26 percent (mostly women) said it would enhance job Sasint/Adobe Stock opportunities for mothers and fathers, about 25  per- cent thought it would enhance the mental health of mothers and fathers, and about 10 percent said it would improve the overall experience of being a parent. l Some women leave the labor force after childbirth but others join, seeking additional income. In Argen- tina, where the respondent sample included both the employed and unemployed, 23  percent of previously working mothers stopped working after childbirth. This signals a need for policies to promote women’s labor attachment after childbirth. A promising finding in both Argentina and Nepal was that a sizable share of respondents joined the labor force after childbirth. In M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S 7 Argentina, 63  percent of mothers not working before Dominic Chavez/World Bank childbirth started working after, citing the need for financial stability and personal fulfillment as reasons for seeking employment. The comparable figure in Nepal was 55  percent of mothers (and 6 percent of fathers); the majority of the mothers seeking work (82 percent) cited the need for additional income to cover the costs of caring for their new child. Analysis that can suggest which women are more likely to join or return to work for financial or personal reasons could be used to provide targeted training, mentoring, or job matching opportunities, resulting in a quick win-win outcome. It is important to note that survey responses indicated that childbirth increased responsibilities for these women, suggesting that working mothers risk exhaustion because of added responsibilities. These results—albeit not from a nationally representative sample—suggest that policy makers in lower-mid- dle-income country contexts must focus not only on improving women’s labor force participation rates after perceptions.5 Women believed that fathers spent only childbirth but also on the quality of jobs, workload, life 9  percent of their time on childcare, while men esti- satisfaction, and well-being. mated they contribute to childcare 36 percent of their time. These responses, while not from the same house- l Disparity in legislated leave days by gender and pre- hold, indicate serious misperceptions regarding the vailing social norms around childcare result in women effort and time it takes to care for a child—a situation shouldering a higher burden of care. The number of made more acute because childcare can be unpaid paternity leave days are low in both countries, but par- work for stay-at-home moms. ticularly so for Argentina (2 paid leave days for fathers in comparison to 15 days in Nepal). Longer leaves for both l Monitoring of legislated benefits will require innova- men and women would increase social security contri- tive approaches in administration. Survey respondents butions or impose higher labor costs on firms. Given the revealed that access to benefits related to safe work- manifold benefits of equitable sharing of newborn care ing conditions for women, breastfeeding facilities, and to families, workers, and societies, increasing paternity childcare options are particularly low. This suggests that leave and financing it partly or wholly from the state benefits that are difficult to monitor may be neglected. budget can be considered. Specifically, two of the six elements in the parental ben- efits framework are relatively easier to monitor—leave The social beliefs and expectations about childcare and income replacement during leave. Because these gleaned from survey respondents confirm the prevail- benefits are administered by the social security agency ing social norms of mothers being held responsible (partially in the case of Nepal and fully in the case of for childcare while fathers focus more on jobs. Results Argentina), accountability is improved, and policy from Nepal clearly indicate that women believe they makers are able to gauge coverage. In Nepal, where the should be the primary caregivers. Interestingly, how- first 60 of the 98-day maternity leave benefit is paid ever, when questioned about the time they spent on for by the employer, consultations suggest that larger childcare, fathers and mothers revealed mismatched firms reserve funds for payout, using historical data as 8 M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S a guide. However, budgeting for this cost each year can a wide range of benefits for all parents, including those be a challenge for small and medium-size firms—and in the informal sector. The Guidance Note on Parental could lead to low compliance or a bias against hiring Benefit Assessment includes a base set of questions for women. The risk of noncompliance by these firms is analyzing each element, along with potential sources higher in the absence of systematic monitoring or spot for data collection. This resource could be useful for compliance checks by government authorities. teams in navigating a topic where limited documenta- tion is available for low- and middle-income countries. The policy challenge in monitoring benefits to be deliv- Most recently, a World Bank team used the framework ered at the firm or individual level is not trivial. The to analyze Kenya’s parental benefits landscape. The survey findings showed that even the formal sector, assessment revealed a need for cash assistance to preg- which is mandated to be covered, did not have universal nant women in the informal sector so they can pay for access to parental benefits. This suggests that govern- transport/time off from work when they travel for their ments need to find innovative approaches to enforce prenatal checkups. This finding informed the design of compliance and nudge firms to provide the legislated a $20 million component of the Bank’s National Youth workplace benefits. A country’s social security agency, Opportunities Towards Advancement (NYOTA) project, for example, could oversee compliance checks at the which provides incentives to vulnerable individuals to firm level on contributions being made and facilities contribute to a social insurance scheme that includes a provided to mothers. Firms can be required to dis- lump sum maternity benefit. close their budget for parental leave and maintenance of creches each year as a separate line item to be ver- The diagnostic assessment facilitated by the parental ified by auditors as part of their annual audits. Positive benefits framework is a quick and low-cost analysis, nudges like public recognition of family-friendly work- which can allow teams to narrow down promising dia- places could also be considered. logue entry points on parental benefits, alert them to any quick win policies, triangulate the data available, and highlight gaps in information. Over time, feedback Moving forward: feeding into the from teams and consultation with international part- World Bank’s analytical work ners like UNICEF and the ILO6 can lead to the creation of a robust framework on parental benefits that is used A parental benefits framework that recognizes the diverse across the international community. labor markets of lower-middle-income country contexts is a bold and new endeavor by this study. The tools and ana- The Parental Benefits Assessment Survey was devel- lytics underlying this study hope to expand the research oped with the assistance of the World Bank’s research and knowledge of practitioners on this important topic. unit. Teams that want to go beyond the diagnostic The World Bank’s knowledge of trade-offs in such con- assessment can deploy some or all the modules of texts, strong engagement with agencies and ministries that the survey, making adjustments based on their specific cover parental benefits, and the relevance of this agenda to research questions. The modules contain questions some of the Bank’s flagship publications allow this work to that apply to parents and nonparents, to those in make an important contribution to the analytical agenda. formal and informal sectors, and to males and females. Select questions from the survey can also be included l The parental benefits framework, guidance note, and in household surveys, business B-Ready assessments, survey questionnaire developed for this study can be or Women, Business and the Law questionnaires to col- used in diagnostic assessments. The parental benefits lect comparable data across countries. framework with its six elements provides a structure for country teams to carry out assessments and iden- l The study’s analysis can inform a more nuanced dis- tify gaps in legislation, implementation, or awareness in cussion by teams on the trade-offs associated with M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S 9 Dominic Chavez/World Bank parental benefits. The rights-based approach around benefits to inform policy. Sex-disaggregated data on parental benefits has been useful in introducing man- parental benefit coverage, contributions collected, dates around these benefits in country legislation. scheme expenditures, and claims can be useful in However, a careful look at implementation of such tracking outcomes and making informed policy choices. legislation suggests that it could, in some instances, Another useful way to disaggregate data would be by do more harm than good to women’s labor force par- employment status, if feasible. Notably, in countries ticipation rates. This study points to the importance of where legislation is in place for firms to provide these focusing on questions such as: How is the benefit being benefits to their workers, coverage data is the only financed? Who bears the lion’s share of the cost, and way for governments to assess compliance. Besides does that create reverse incentives (disincentives) for scheme-level data, such as that published by ANSES in hiring women? Who is covered? Argentina, budgetary deficits should be highlighted to help assess program sustainability. A clear, consistent, In low- and middle-income countries where informal- and transparent data reporting standard would allow ity is prevalent and fiscal resources are limited, teams practitioners to make recommendations that balance a need to carefully weigh coverage needs against the parental leave scheme’s sustainability with its coverage risks of labor market distortions if payroll taxes are and adequacy goals. imposed to finance these benefits. A phased approach to implementing benefits should be considered based l Knowledge gained through parental benefits assess- on the most pressing barriers as evident from the diag- ment can be used to initiate discussion on maternity/ nostic assessment and where possible cost sharing is paternity insurance. Such insurance is often admin- recommended. istered by the national social security agency, a key counterpart of the World Bank’s social protection l The study points to the need for gender-based teams. This relationship can be used as an entry point data disaggregation and data reporting on parental to engage in discussions on the design, administration, 10 M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S firm, individual contributions, government transfers, or Rama George-Alleyne/World Bank a mix of the three. Select questions from the survey can also be adapted for use in the Bank’s B-Ready assessment, which looks at the regulatory framework and public services directed at firms, and the efficiency with which they are combined in practice. Specifically, the labor topic within B-Ready can include questions addressing cost sharing, financ- ing, duration of leave, and monitoring—topics that have been identified by the study as important for inclusive implementation of parental benefit policies. Moving forward: feeding into World Bank operations compliance, financing, and monitoring of parental insur- The study’s insights can inform the World Bank’s operational ance benefits for the formal sector. In countries where support to countries on legislative reforms to improve the such a scheme does not exist, engagement can focus coverage and equity of existing parental benefits and pilots on introducing one based on best practices. In coun- on innovative policies that extend benefits to the informal tries where data shows implementation gaps, policy sector. Using a parental benefits lens in ongoing engage- discussion can focus on raising awareness and improv- ments with the private sector and in the portfolio of social ing the design, while being mindful of trade-offs in labor protection interventions can also lead to lasting progress. dynamics, cost, and compliance. And in countries with a l Operationalize recommendations for improving good design for the formal sector, the focus can be on parental benefits in Argentina and Nepal. The study’s expanding coverage to the informal sector and moni- six-element framework enabled a bird’s-eye view of toring workplace benefits. the status of parental benefits in Argentina and Nepal. l The study insights can inform questions to be used When complemented with survey findings showing the with World Bank data sets such as Women, Busi- extent of the implementation gap within each element, ness and the Law and B-Ready assessments. Women, this information provides country teams with areas Business and the Law 2.0—which covers 190 econ- on which to focus in their dialogue with counterparts. omies and 10 topics relevant to women’s economic For example, in Nepal, the newly launched voluntary participation—includes a parenthood indicator and a scheme for the informal sector stood out as an oppor- childcare indicator. As an example of potential synergy, tune topic for policy collaboration. In Argentina, which the study points to a large gap in coverage on paren- has multiple schemes for the formal and informal tal benefits between formal and informal workforces. workforce, the integration of these schemes with other Accordingly, questions posed to respondents regard- social protection databases or the potential use of the ing the Women, Business and the Law parenthood ANSES website as a portal to provide information on indicator should differentiate between formal and childcare could be promising opportunities. informal work. Financing source was also identified as l Use development policy financing to support legisla- an important factor in ensuring compliance and pre- tive reforms that improve the coverage and equity of venting bias in the hiring of women. Questions should parental benefits. The study has shown that legislation seek to determine if the leave benefit is paid for by the M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S 11 alone is not sufficient for de facto coverage, although it is evaluating schemes that provide short-term benefits, an essential and important tool for progress in this area. or a mix of short- and long-term insurance, to these World Bank–financed development policy operations workers. World Bank financing also can be used to pro- should support legislative reforms while being mindful vide monetary incentives or contribution subsidies to of the trade-offs noted here. This will allow the reforms boost take-up in such schemes. The National Youth to be adapted for the specific country while improving Opportunities Towards Advancement project in Kenya coverage for all workers and promoting equity in bene- is a salient example. A $20  million component of the fits for both men and women. project supports Kenya’s social security agency in its launch of a savings scheme targeting 190,000 vulnera- For example, in Colombia, the Equitable and Green ble youth and providing a lump sum maternity benefit Recovery development policy financing approved to women who contributed consistently before they in 2022 and now completed supported government became pregnant. measures that reduce women’s disproportionate household and carework so as to increase their labor l Design interventions with private sector partners on market outcomes. The initiative supported two pieces financing and collective action. Parental benefits aim of legislation—one prohibiting discrimination against to create safe, respectful, and inclusive workplaces; women’s access to employment (e.g., an employer expand economic choices, especially for women; and cannot question applicants about their plans for child- provide quality affordable care services to families. bearing); and one that increases the length of paternity Given these objectives, state provision and financing leave and shared parental leave, and allows parental alone is unlikely to be feasible or efficient. The private leave to be taken on a part-time basis. Other reforms sector could be a useful partner not only by cover- to consider in the context of World Bank lending are a ing elements under the parental benefits framework reduction in the durations of maternity and paternity itself, but also through involvement in complementary leave by lengthening the latter; extending the man- policy areas such as the integration of family-friendly date for social security–based leave coverage to those policies into procurement/supply chain sourcing pol- engaged in platform work or to self-employed workers icies, the promotion of positive parenting practices, (as was done in Argentina via the Monotributo regime); and maternal health and nutrition support programs or using a mix of general revenues and social security (UNICEF 2019). World Bank and International Finance contributions to provide for leave income replacement, Corporation teams currently work in tandem to design depending on the individual country’s fiscal and labor interventions that use a mix of public and private market environment. financing such as low-cost or government-subsi- dized childcare services. Other interventions could l Pilot and evaluate voluntary social insurance schemes involve the use of trusted public agencies (like ANSES that provide parental benefits to the informal sector. in Argentina) to disseminate information on state- and Nepal introduced a voluntary scheme in August 2023 nonstate-provided childcare services, thereby allowing targeted to the informal sector. This scheme collects users to make choices based on proximity, compat- contributions based on minimum wages and provides ible hours for working parents, and quality assurance both short-term (maternity, health coverage) and long- checks by the government. Governments can also work term benefits (pensions). Guven, Jain, and Joubert with industry groups to put auditing requirements in (2021) document the growing number of countries in place and to create accreditation facilities that can help Asia and Africa that provide such voluntary schemes. A with monitoring firms’ compliance. common finding across these countries is that short- term benefits can be more attractive for workers in l Use a parental benefits lens in SPJ interventions for the informal sector compared to old-age pensions. young and vulnerable women or households. World World Bank–financed projects can explore piloting and Bank SPJ projects use a mix of social assistance, social 12 M A K I N G P RO G R E S S O N PA R E N TA L B E N E F I T S I N LOW- A N D M I D D L E - I N C O M E C O U N T R I E S insurance, and labor market interventions to target 4. The scheme requires individuals to pay NPR 1,032 (approxi- mately $7.37) voluntarily each month, with the remaining support to vulnerable households with the objective contribution currently subsidized by the government. of building their resilience and promoting economic 5. Since the survey did not speak to men and women from opportunities for them. Combining the knowledge of the same household, it is not possible to comment on intra-household misperception on time spent for childcare. SPJ teams—on the barriers facing these groups and their 6. UNICEF has contributed to this topic with a set of four fam- familiarity with stakeholders—with a parental benefits ily-friendly policies; the ILO has established the Maternity lens can help introduce schemes, make reforms, or— Protection Convention (C183). at minimum—nudge households and mothers to be better supported during pregnancy and childbirth. For example, targeting social protection benefits and social References norm interventions at the household level has the Cascio, E., S. Haider, and S.H. Nielsen. 2015. “The effectiveness of potential to equalize household dynamics by incentiv- policies that promote labor force participation of women with children: A collection of national studies.” Labour Economics izing women to work and men to take on more care 36: 64-71. duties (World Bank 2021). Labor market policies that Cherchi, Ludovica, and Himanshi Jain. 2025. “Awareness, Access, promote flexible working arrangements could be par- and Perceptions around Parental Benefits among Urban Argentinians.” SPJ Discussion Paper. World Bank, Washington, ticularly useful for mothers looking to rejoin the labor DC. force. Promoting flexible work arrangements should be Ekberg, J., R. Eriksson, and G. Friebel. 2013. “Parental leave—A policy considered with other policies and programs aimed at evaluation of the Swedish ‘Daddy-Month’ reform.” Journal of Public Economics 97: 131-43. balancing care responsibilities between parents so they Guven, Melis, Himanshi Jain, and Clement Joubert. 2021. “Social do not reinforce existing social norms and biases. In Protection for the Informal Economy: Operational Lessons Rwanda, the Integrated Early Childhood Development for Developing Countries in Africa and Beyond.” World Bank, Washington, DC. Program is successfully providing high-quality care and Jain, Himanshi, Ambika Sharma, Ludovica Cherchi, Nirali Desai, early stimulation for children, helping parents access and Sunalika Singh. 2025. “Guidance Note for Assessing Paren- tal Benefits.” World Bank, Washington, DC. resources for proper family nutrition (Uwera 2024). Some 31,000 early childhood development centers Johansson, Elly-Ann. 2010. “The effect of own and spousal parental leave on earnings.” Working Paper 2010:4. Institute for Labour have been established serving over 1.2 million children Market Policy Evaluation, Uppsala. across the country. The centers create employment for Khanal, Regina. 2024. “Women in Informal Economy.” Nepal Eco- nomic Forum blog post April 15. experienced mothers from public works beneficiary households; provide early stimulation and adequate Pennings, Steven. 2022. “A Gender Employment Gap Index (GEGI): A Simple Measure of the Economic Gains from Closing Gender nutrition to children; and enable vulnerable house- Employment Gaps, with an Application to the Pacific Islands.” Policy Research Working Paper 9942. World Bank, Washington, holds to access a quality, affordable, and safe childcare DC. option. Schulz, Karen. 2020. “Why parental leave matters for develop- ment.” World Bank blog post February 19. Sharma, Ambika, and Himanshi Jain. 2025. “De Jure and De Facto Coverage of Parental Benefits in Nepal.” SPJ Discussion Paper. World Bank, Washington, DC. Notes UNICEF (United Nations Children’s Fund). 2019. “Business and Fam- ily-Friendly Policies: An Evidence Brief.” UNICEF, New York. 1. A guidance note released by the team includes questions sug- gested for each element that can be used to carry out similar Uwera, Sifa. 2024. “Rwanda’s innovative approach to early child- assessments (Jain et al. 2025). hood development through social protection.” World Bank blog post June 14. 2. The bulk of the social security contributions in both countries goes toward financing old-age pensions. World Bank. 2021. “Improving Women’s Access to Quality Employ- ment.” World Bank, Washington, DC. 3. Slightly different definitions of the informal sector were applied in each country (see Argentina and Nepal studies for World Bank. 2023. “World Bank Gender Strategy 2024–2030: details) to simplify the sampling methodology but, broadly Accelerate Gender Equality for a Sustainable, Resilient, and speaking, the informal sector comprises those who are in a Inclusive Future. Consultation Draft.” World Bank, Washington, job where the employer does not pay social security contribu- DC. tions, or they run a business that is not registered.