Living Wage
Living wage ordinances typically set a wage above the federal minimum wage, but they only apply to businesses that service receive state contracts or recieve assisstance from the government. Living wage policies are meant to ensure that workers recieve enough income to secure basic amoynts of food shelter, transport, medical needs and other necessities.
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.
As if New York's economy wasn't already stressed enough, there's a renewed push in the City Council for a local ‘living wage’ law that could hinder the city's economic renewal while reducing job opportunities for the very people it is supposed to help.
Unfortunately, living wage laws may have an unintended consequence of causing low-wage workers to be replaced by higher skilled, more educated workers. Living wage ordinances hit hardest at new entrants to the labor force.
By mandating an even higher minimum, the living wage prices even more people out of work. The people who push these cockamamie ideas never seem to ask why any employer would hire someone at $8.23 if that person's services are only valued in the marketplace at, say, $5.00.
Evidence
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The Economic Impact of Local Living Wages
The Economic Policy Institute finds that the costs of living wage ordinances are often overestimated.
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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.
