The Economic Effects of Living Wage Laws: A Provisional Review
AbstractNearly 100 cities and local governments in the United States have passed living wage laws since the mid-1990s. Although the central goal of living wages is to reduce poverty, they may fail to do so because of disemployment effects. We summarize and critique the existing research on the effects of living wages on wages, employment, and family income, emphasizing common findings, points of disagreement, and important questions for future research. The evidence thus far points to wage increases as well as employment losses for the least-skilled, although there is disagreement about the employment effects. On balance, there are some beneficial distributional effects. The evidence also points to efficiency wage-type effects of living wage laws that may offset some of the adverse effects on employers.
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Bibliographic InfoPaper provided by Public Policy Institute of California in its series PPIC Working Papers with number 2004.10.
Length: 39 pages
Date of creation: Jun 2004
Date of revision:
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Other versions of this item:
- Scott Adams & David Neumark, 2004. "The Economic Effects of Living Wage Laws: A Provisional Review," NBER Working Papers 10562, National Bureau of Economic Research, Inc.
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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