Income in the weeks there is none
About a third of Americans who take family or medical leave are paid nothing for it, and another quarter are paid part of their wage. Two thirds of those on partial or no pay report financial difficulty during the leave.
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Value
The stream is money arriving in a household during weeks when its earnings have stopped, and money is priced at the middle of the scale wherever it appears. What distinguishes this from an ordinary transfer is timing rather than class: the same household pays the contribution in the weeks it is earning and draws the benefit in the weeks it is not, so the gain is the difference between what a euro is worth at those two moments. That difference is carried in the Impact, and the contribution appears against this argument at the ordinary weight. Nothing is counted here for the relief of not having to choose between a sick parent and a pay cheque, which is the same fact as the money under a different name. Nothing is counted for the leave itself, which is a separate argument. The value is the middle of the scale, and the whole case for this argument is that a euro does not weigh the same in every week of the year.
Impact
The Labor Department's survey finds that 15.3 percent of the workforce takes leave for a qualifying reason in a year, that 34 percent of those on leave are paid nothing and a further 24 percent only part of their wage [2][3]. Twenty-seven percent of the workforce already lives in a state with its own insurance programme, so a federal one is new for about 123 million workers. Washington State's programme, which has run since 2020 at a comparable replacement rate, costs about 385 dollars per covered worker a year, in a range from 300 to 530 [7]; on 123 million workers that is 47.2 billion dollars, or 40.7 billion euro. Not all of it is new money for households: where an employer already paid for the leave, the insurance takes over the bill and the household is no better off. Sixty percent is taken as new household income, in a range from 45 to 75 percent. The remaining 24.4 billion euro arrives in weeks when the household has little or no other income, which is worth 1.4 times an ordinary euro, in a range from 1.1 to 2.0. The Impact is the largest in this debate and it rests less on the size of the benefit than on what a euro is worth in a month without pay.
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| Workers not already covered by a state programme [4] | 168 million employed, 27 percent already covered | 123 million workers | |
| × | Benefits paid per covered worker a year Setting, range 300 to 530 dollars: what Washington State's programme has cost per covered worker at a comparable replacement rate [7] | 385 dollars | 47.2 billion dollars a year |
| ÷ | In euro exchange rate used throughout this evaluation | 1.16 dollars to the euro | 40.7 billion euro a year |
| × | Share that is new money for the household Setting, range 45 to 75 percent: where an employer already paid for the leave the insurance takes over the bill and the household gains nothing [4] | 60 % | 24.4 billion euro a year |
| × | Weight of a euro in a week without earnings Setting, range 1.1 to 2.0: the household is at its ordinary income in the weeks it contributes and near zero in the weeks it draws | 1.4 | 34.19 billion euro a year |
| ÷ | Normalised Impact scale of this evaluation | 5 billion euro a point | 6.84 |
Plausibility
The cost of the programme is the best-grounded number here, because four states have run comparable insurance for years and publish what they spend. The counterfactual is the same workers under the leave law as it stands, unpaid unless their employer chooses otherwise. The design behind the cost figure is a controlled comparison rather than an experiment: states with programmes are compared with states without, and nothing makes the difference between them exogenous — states that legislate paid leave differ in industry mix, unionisation and female labour force participation, all of which move take-up. That confounder is named and unresolved, and it is why this sits below the ceiling a precedent would otherwise allow. Reverse causation is not a concern for a cost figure. The larger uncertainty is behavioural: a federal programme covering the states that have chosen not to legislate would face different take-up from Washington's, and the band on the per-worker cost is set wide for that reason. The Plausibility is above the middle: four operating programmes show what this costs, and none of them is a random sample of the country.
Counterfactual: the same workers under the existing unpaid leave statute. Design: controlled — states with insurance programmes compared against states without, with no exogenous variation in who legislated [7]. Confounder: states that adopt paid leave differ in industry mix, unionisation and female labour force participation, all of which move take-up; named and unresolved. Direction: reverse causation is not a concern for an observed programme cost. Ceiling: controlled 7.0 binds below the multiple-precedents ceiling of 8.5. The difference between adopting and non-adopting states is carried in the cost band, not in P.