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Article: The economic costs of expanding the Family and Medical Leave Act to small business: Well-Intended public policy may have some unintended consequences.
- Article from:
- Business Economics
- Article date:
- April 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 The National Association for Business Economists. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The federal Family and Medical Leave Act (FMLA) became effective in April 1995 for firms with more than fifty employees. Since then Congress has considered expanding the FMLA to cover small businesses. NFIB's new Regulatory Impact Model (RIM) is used to study the effects of expanding the FMLA to firms with less than fifty employees. This paper focuses on estimation of three kinds of costs for small business that would be caused by an expansion of the FMLA: labor costs, management costs and various fees. The results of the analysis suggest that an expanded version of the FMLA would have serious, negative effects on the small business sector.
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