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Santa Monica’s Minimum Wage: Assessing the Living Wage Movement’s New Frontier

Author

Listed:
  • Richard H. Sander

    (University of California, Los Angeles)

  • E. Douglass Williams

    (University of the South)

Abstract

Local campaigns to create high minimum wages in submetropolitan districts have become a growing part of the living wage movement. In this article, the authors examine the structure and likely effects of an ambitious minimum wage ordinance adopted by the Santa Monica City Council in 2001 but narrowly defeated in a citywide referendum in November 2002. Using a range of data sources, the authors find that the ordinance would have had negative, but surprisingly mixed, effects on local business sectors and highly perverse distributional effects. Apart from their merits as policy, local minimum wage laws raise important, little-studied questions for labor and urban economists.

Suggested Citation

  • Richard H. Sander & E. Douglass Williams, 2005. "Santa Monica’s Minimum Wage: Assessing the Living Wage Movement’s New Frontier," Economic Development Quarterly, , vol. 19(1), pages 25-44, February.
    • Handle: RePEc:sae:ecdequ:v:19:y:2005:i:1:p:25-44
    DOI: 10.1177/0891242404268705
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    References listed on IDEAS

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    1. Neumark, D. & Schweitzer, M. & Wascher, W., 1999. "The Effect of Minimum Wages Throughout the Wage Distribution," Papers 9919, London School of Economics - Centre for Labour Economics.
    2. Akerlof, George A, 1984. "Gift Exchange and Efficiency-Wage Theory: Four Views," American Economic Review, American Economic Association, vol. 74(2), pages 79-83, May.
    3. Malcomson, James M, 1984. "Work Incentives, Hierarchy, and Internal Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 92(3), pages 486-507, June.
    4. Robert Pollin & Mark Brenner, 2000. "Economic Analysis of Santa Monica Living Wage Proposal," Research Reports rr2, Political Economy Research Institute, University of Massachusetts at Amherst.
    5. Solow, Robert M., 1979. "Another possible source of wage stickiness," Journal of Macroeconomics, Elsevier, vol. 1(1), pages 79-82.
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