The Urban Center

The Likely Impact of Mandated Paid Sick and Family-Care Leave on the Economy and Economic Development Prospects of the State of Ohio

Prepared for:
Ohioans to Protect Jobs
Prepared by:
The Urban Center
Maxine Goodman Levin College of Urban Affairs
Cleveland State University

September 26, 2008

Download the report (pdf): Executive Summary | Report | Appendices

ABSTRACT: This report analyzes the potential impact of a proposed paid sick and family care leave legislation on the economy of the state of Ohio, the economic development prospects of the state and on the management of production processes that depend on highly integrate teams. The report also reviews the literature on the effect of mandated paid sick and family care leave on the industrial relations systemóworkplace performance and worker retention. Our analysis concludes that there would have been a net cost associated with the paid sick leave and family-care initiative proposed in Ohio with a lower bound estimate of $63.84 annual net cost per newly covered worker and an upper bound estimate of $260.48 annual net cost per newly covered worker. We estimate that 1.6 million workers would have gained paid sick and family care leave if the proposed initiative were enacted in Ohio; therefore, our lower bound estimate is that the total net cost in Ohio would be $102.9 million dollars per year and our upper bound estimate is $420.0 million dollars per year. This estimated range is the minimum impact on the state. It does not include the dynamic, economic development impacts. Our cost benefit analysis looks at the short run impacts and does not include longer term negative effects that result from Ohio losing investment to border states as companies seek to avoid the mandates.

For additional information on this report, contact:
Kevin E. O'Brien, Director, Center for Public Management
Daila Shimek, Project Manager, Center for Public Management