Living Wages
Living wage policies have been established in cities, counties, school districts, states and other public agencies throughout the country to lift workers out of poverty. Most living wage laws set minimum wage and benefit standards for public contracts, subsidies and leaseholders on public land. Several are based upon a geographic zone. Today there are over 150 such laws in place.
Commentary
Cry Wolf Quotes
…the stated goal behind the living wage movement is poverty reduction, and many of the ordinances mandate a wage that would lift a family of four above the poverty level. However, as with minimum wage increases, economic studies have shown that living wage mandates do more harm than good to those living in poverty through resulting job elimination and shifting entry-level jobs from lower-skilled workers to higher-skilled workers.
If the proposed ordinance is adopted it will hurt small women- and minority-owned businesses the most, the majority of which are already struggling mightily to do business in this city of higher-than-average costs of doing business.
The loony-tuners are at it again. The cost of doing business in Oakland is already about the highest in the state. Compared with other cities, adoption of the proposed [living wage] ordinance will drive the cost off the charts.
By forcing employers to pay higher wages for entry-level jobs, Boston's City Council is also encouraging them to only hire applicants with the skill levels needed to match those wages. No amount of political grandstanding is going to repeal that economic law.
Related Laws and Rules
Evidence
-
The Economic Impact of Local Living Wages
The Economic Policy Institute finds that the costs of living wage ordinances are often overestimated.
-
Examining the Evidence: The Impact of the Los Angeles Living Wage Ordinance on Workers and Employers
Los Angeles Alliance for a New Economy: The LA living wage ordinance brought a pay raise to 10,000 workers, most of whom were poor.
Backgrounders & Briefs
Living Wage Policy Brief: Stephanie Luce
Living wage ordinances have helped thousands of workers and tiresome cry wolf claims are wrong.
Resources
Political Economy Research Institute is a think tank focused on a variety of subjects such as diverse financial regulation, living wages and environmental protection.
University of California-Berkeley Labor Center carries out research on labor and workplace-related issues.
The National Employment Law Project is an organization that promotes economically just public policy in the face of the prevailing trends of the law several decades.
