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
A poorly crafted ‘living wage’ plan could achieve the opposite of its well-intentioned social goals. It could result in fewer good-paying jobs in the city, and less opportunity at the entry level. It could drive up the cost of city programs, leaving fewer resources to help lower-income families.
Why, then, would [the Boston City Council] threaten to drive away businesses by signing on to a murky, unpredictable, and divisive ordinance that requires employers and their subcontractors to open their books, including wages, deductions, and fringe benefits, to all "applicable" city departments? The Internal Revenue Service and the state Department of Revenue are required to keep such information confidential. The city ordinance requires it to be made public, placing businesses at a competitive disadvantage.
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.
I believe employers should be aware that employees who earn under $10 an hour cannot lead an independent life. But I do not believe that government should dictate wages. We have seen this fail in Socialist and Communist countries. It will do irreparable harm.
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.
