$2 Billion Generated in Wedding Industry Alone

Employees with Access to Marriage Rights More Productive

October 9, 2006

PRESS RELEASE
For immediate release

Media Contact:
Lee Badgett, 310-825-5847 (O) or 310-904-9761 (C), Badgett@law.ucla.edu
Cathy Renna, 917-757-6123, cathy@rennacommunications.com
Syd Peterson, 917-621-6411, syd@rennacommunications.com

LOS ANGELES - Giving same-sex couples marriage rights will be good for the economy, according to a new study, The Effect of Marriage Equality and Domestic Partnership On Business and the Economy," from UCLA's Williams Institute. The study documents gains to businesses from happier and healthier workers that would outweigh new costs for benefits. The economy would also gain from the positive effect of equality on state government budgets.

"Policymakers and businesspeople have not fully recognized the enormous potential gains to the economy from treating same-sex couples equally," noted Dr. M. V. Lee Badgett, study co-author and research director of the Williams Institute. "Our study shows that equal treatment of couples in the business world attracts heterosexual employees and creates more productive workplaces for gay, lesbian, and bisexual employees."

The study documents numerous research findings on different aspects of the economy. Gay, lesbian, and bisexual (GLB) employees who get domestic partner benefits are more open in the workplace and have better mental health outcomes than employees that do not get such benefits. Most importantly, partner benefits increase job satisfaction and job retention, reducing recruitment and training costs for companies. Although businesses will have some one-time administrative costs, ongoing added costs to employee benefit plans will be low, since few employees will have new spouses or partners to cover.

The economy gains in other direct ways, as well. "Spending on new weddings alone would generate $2 billion for businesses in the wedding industry," reported co-author Gary J. Gates, senior research associate at the Williams Institute. "Places that allow same-sex couples to marry have reported noticeable boosts in business for hotels, caterers, florists, and other wedding-related businesses. Our study reports the expected wedding impact for each state."

The study notes that differences across states in policies toward same-sex couples can be confusing and costly for businesses. Complexity and uncertainty make it difficult for employers to know how to treat employees and their partners across jurisdictions. Employers also risk losing employees to jobs in states with more favorable policies.