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.
Clayton-Matthews, Alan and Albelda, Randy, "Description of the Albelda Clayton-Matthews/IWPR 2017 Paid Family and Medical Leave Simulator Model" (2017). Economics Faculty Publication Series. 41.