The basic strategy behind our approach to estimating the cost of a paid leave program was to, as much as possible, base estimates of program costs on actual known leave-taking behavior, and where this was not possible, to estimate a range of program costs reflecting a range of reasonable assumptions about unknown aspects of behavior in the presence of a paid leave program. We wanted to be able to estimate the sensitivity of program costs estimates to these assumptions. We also wanted to be able to analyze the distribution of program benefits by demographic characteristics. Furthermore, we wanted to be able to estimate the costs of similarly structured paid leave benefit programs in other states, to be able to have some control over the assumptions about behavior that affect program cost estimates, and to be able to undertake distributional analyses.
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This model was originally developed a decade ago under contract with the Institute for Women’s Policy Research. It has been updated and revised as part of a workforce product funded by a grant (WB-26510-14-60-A-25) awarded to Commonwealth Corporation by the U.S. Department of Labor’s Employment and Training Administration from October 2014-September 2015. Additional support for model development was provided by IMPAQ International through a grant from the U.S. Department of Labor, Chief Evaluation Office (DOLQ129633247). The product was created by the grantee and does not necessarily reflect the official position of the U.S. Department of Labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership. This product is copyrighted by the institution that created it. The model has been updated and revised several times since 2015. The most recent update covered by this document was September 2, 2017.