Keystone Research Center Data Analysis: Paid Parental Leave Would Strengthen Allegheny County Families and Economy at Minimal Cost
New Keystone Research Center report finds the economic cost of County Executive Innamorato’s proposed paid parental leave mandate is minimal — just 0.08% of county GDP — while delivering significant savings and public health benefits.
A new economic analysis released today by the Keystone Research Center (KRC) finds that the paid parental leave regulations proposed by County Executive Sara Innamorato and the Allegheny County Health Department (ACHD) would carry a minimal cost to the county’s economy while delivering substantial benefits to workers, families, and employers.
The proposed regulations would require all Allegheny County employers to provide 18 weeks of paid parental leave. While much of the public debate has focused on the cost to businesses, KRC’s analysis — using the U.S. Department of Labor’s Worker Paid Leave Usage Simulation (Worker PLUS) Model — shows those costs to be modest in the context of the county’s roughly $133 billion economy, and largely recovered through reduced turnover and new consumer spending.
Key Findings:
- The proposed mandate would benefit an estimated 10,641 new parents per year — about 1.7% of the county’s employed workforce — with an average benefit of $16,065.
- The projected aggregate annual cost to employers is $170.9 million, or just 0.13% of Allegheny County’s GDP.
- After $9.2 million in annual turnover savings and $49.7 million in new economic activity (a $58.9 million offset), the net cost of compliance falls to roughly $112 million — just 0.08% of county GDP.
- That net cost is less than what Allegheny County employers already spend on workers’ compensation claims ($190.6 million, 0.14% of GDP) or paid vacation time ($1.29 billion, 0.97% of GDP) each year.
- Access to paid parental leave increases a new mother’s likelihood of staying in the workforce by an average of 52% across studies.
- For a typical family earning the county’s median household income of $78,548, the benefit would replace nearly 35% of a year’s income during the year a new child arrives.