Marriage Equality Would Positively Impact Ohio Economy by $126.6 Million

Marriage Equality Would Positively Impact Ohio Economy by $126.6 Million

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The following verbiage is provided by Freedom to Marry Ohio.

Photo: Freedom to Marry Ohio

Ohio is home to 19,700 same‐gender couples, according to corrected totals from the 2010 Census.

Based on the experience of Massachusetts, it is assumed that half of these (more than 9,800) would marry in the first three years. It is likely that Ohio would also attract couples from other states that have not legalized same‐gender marriage. More than 31,000 same‐gender couples live in the portions of surrounding states convenient to Ohio. It is unclear how many of these would travel to Ohio to marry, however, so they are not included in the formal analysis. Data from Massachusetts imply an average same‐gender wedding expenditure of $8,800, which may be considerably less than that for opposite-gender weddings.

This average implies wedding spending of $56.6 million statewide in the first year of legal same‐gender marriage and $88.5 million in the first three years. Although these totals represent the revenue to industries supplying wedding‐related goods and services, they overstate the direct impact on the Ohio economy of same‐gender weddings.

These expenditure totals overstate the impact because in order to have an economic impact, spending must come from accumulated savings or out‐of‐state contributions. Spending that is diverted to weddings from other current in‐state purchases is simply a reallocation of spending that would have occurred in any case and so provides no incremental benefit. However, the spending that is new to the economy gives rise to indirect impacts elsewhere in the economy as businesses providing wedding-related goods and services increase their own purchases from suppliers and workers use their increased earnings to make household purchases of all types. Because this second‐order – or indirect –spending would not have occurred had the weddings not occurred in the first place, it is as much a part of the economic impact as are the impacts of the weddings themselves. These indirect impacts are measured by applying an economic impact model: the Regional Input‐Output Modeling System (RIMS II) of the United States Bureau of Economic Analysis.

Because no information is available regarding the typical proportion of spending on weddings that comes from savings, assumptions are required. It is assumed that 50 percent of weddings are partly paid for from savings and thus generate an impact. Forty percent of the impact‐generating weddings (i.e., 20 percent of all weddings) are assumed to cost approximately $22,000; the other 60 percent of these weddings cost $7,500. Two alternative assumptions are made regarding the share of spending on these weddings that comes from savings – generating two alternative sets of impacts. The low‐impact assumption is that savings pay for 40 percent of expenses; the high‐impact assumption is that savings satisfy two‐thirds of expenses.

Another category of impacts comes from out‐of‐state guests at these weddings. Because these guests bring new spending into the state, all of them generate an impact whether the wedding itself does or not. Although Massachusetts weddings draw an average of 16 out‐of‐state guests, a lower average (10) is assumed for Ohio. Ohio tourist spending data are used to estimate the spending of these out‐of‐state guests.

Legalizing same‐gender marriage would increase Ohio output (gross domestic product) by $101.3 million to $126.6 million in the first three years. Household and business earnings increase $30.4 million to $38 million. Employment impacts cannot be totaled across years, but 740 to 930 jobs are sustained in the first year and 170 to 210 jobs in the third year.

See the report and read more here: Economic Impacts of Legalizing Marriage of Same‐Gender Couples in Ohio.

Source: Freedom Ohio

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