A 70-sector regional economic model was built by REMI and customized to the Washington, D.C. Metropolitan Statistical Area so as to determine the impacts of the most progressive universal paid leave plan the District has ever enacted. Three scenarios that were modeled were: 1) businesses absorb the 0.62% payroll tax, 2) employees absorb the tax, and 3) employers and employees split the tax evenly. All three scenarios show very minor impacts to GDP and employment, but important social factors show significant improvements, particularly in reduction of infant mortality and increases in women’s labor force participation.
District of Columbia – Economic Policy Impact Statement [full PDF]
