The Economic Impact of Local Living Wages

Date Published: 
Wed, 02/15/2006

Jeff Chapman and Jeff Thompson. Economic Policy Institute. February 15, 2006.

The economic impact of local living wages” is a survey of living wage studies. Chapman and Thompson show that the cost of living wage laws is “consistently overestimated”, actual costs were usually about one-tenth of one percent of a city’s overall budget.

Most affected workers are adults, who are employed full time. An LA study shows that a mere 1 percent of potentially affected workers suffered job losses. Multiple studies show that firms with living wage policies enjoy lower levels of turnover.