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

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  • Suzanne Clain

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

Suggested Citation

  • Suzanne Clain, 2012. "Explaining the Passage of Living Wage Legislation in the U.S," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 40(3), pages 315-327, September.
    • Handle: RePEc:kap:atlecj:v:40:y:2012:i:3:p:315-327
    DOI: 10.1007/s11293-012-9328-0
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    References listed on IDEAS

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    1. Oren Levin-Waldman, 2004. "Cities That Pass Living-Wage Ordinances," Challenge, Taylor & Francis Journals, vol. 47(5), pages 56-68.
    2. Barry T. Hirsch & David A. MacPherson, 2003. "Union Membership and Coverage Database from the Current Population Survey: Note," ILR Review, Cornell University, ILR School, vol. 56(2), pages 349-354, January.
    3. Adams, Scott & Neumark, David, 2005. "The effects of living wage laws: Evidence from failed and derailed living wage campaigns," Journal of Urban Economics, Elsevier, vol. 58(2), pages 177-202, September.
    4. 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.
    5. 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.
    6. David Neumark & William Wascher, 1992. "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws," ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
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    More about this item

    Keywords

    Living wage legislation; R5; H7;
    All these keywords.

    JEL classification:

    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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