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Explaining the Passage of Living Wage Legislation in the U.S

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  • Suzanne Clain

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Abstract

Using data from various sources to describe 1,077 U.S. cities, I examine the adoption of living wage legislation between 1995 and 2006. I analyze both the decisions to adopt such legislation and the timing of such decisions. My principal finding is that, while the size and political identity of the community play a significant role, the adoption of living wage legislation is also significantly influenced by local economic circumstances. An important implication is that researchers who seek to measure the economic impacts of the legislation must allow for its endogeneity, in order to separate its economic effect(s) from its economic cause(s). Copyright International Atlantic Economic Society 2012

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File URL: http://hdl.handle.net/10.1007/s11293-012-9328-0
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Bibliographic Info

Article provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.

Volume (Year): 40 (2012)
Issue (Month): 3 (September)
Pages: 315-327

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Handle: RePEc:kap:atlecj:v:40:y:2012:i:3:p:315-327

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Keywords: Living wage legislation; R5; H7;

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References

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  1. Scott Adams & David Neumark, 2004. "When Do Living Wages Bite?," PPIC Working Papers 2004.09, Public Policy Institute of California.
  2. Estrella, Arturo, 1998. "A New Measure of Fit for Equations with Dichotomous Dependent Variables," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(2), pages 198-205, April.
  3. Levin-Waldman, Oren M., 2008. "Characteristics of cities that pass living wage ordinances: Are certain conditions more conducive than others?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2201-2213, December.
  4. Scott Adams & David Neumark, 2005. "The Effects of Living Wage Laws: Evidence from Failed and Derailed Living Wage Campaigns," NBER Working Papers 11342, National Bureau of Economic Research, Inc.
  5. David Neumark & William Wascher, 1992. "Employment effects of minimum and subminimum wages: Panel data on state minimum wage laws," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
  6. Oren Levin-Waldman, 2004. "Cities That Pass Living-Wage Ordinances," Challenge, M.E. Sharpe, Inc., vol. 47(5), pages 56-68, September.
  7. Barry T. Hirsch & David A. Macpherson, 2003. "Union Membership and Coverage Database from the Current Population Survey: Note," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 56(2), pages 349-354, January.
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