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When Do Living Wages Bite?

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  • Scott Adams
  • David Neumark

Abstract

Many features of living wage laws may influence the strength of their effects on the wages and employment of low-skill workers. Echoing past research, we find that business assistance living wage laws generate stronger wage increases and employment reductions than do contractor-only laws. However, broader enforcement or implementation as well as the geographic concentration of living wage laws also appear to strengthen their effects. Finally, geographic concentration may be more significant than the distinction between business assistance and contractor-only living wage laws.

Suggested Citation

  • Scott Adams & David Neumark, 2004. "When Do Living Wages Bite?," PPIC Working Papers 2004.09, Public Policy Institute of California.
    • Handle: RePEc:ppi:ppicwp:2004.09
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    References listed on IDEAS

    as
    1. Scott Adams & David Neumark, 2005. "Living Wage Effects: New and Improved Evidence," Economic Development Quarterly, , vol. 19(1), pages 80-102, February.
    2. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    3. Robert Pollin & Jeannette Wicks-Lim & Mark D. Brenner, 2002. "Measuring the Impact of Living Wage Laws: A Critical Appraisal of David Neumark's How Living Wage Laws Affect Low-Wage Workers and Low-Income Families," Working Papers wp43, Political Economy Research Institute, University of Massachusetts at Amherst.
    4. David Neumark & Scott Adams, 2003. "Do Living Wage Ordinances Reduce Urban Poverty?," Journal of Human Resources, University of Wisconsin Press, vol. 38(3).
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    Cited by:

    1. 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.
    2. Addison, John T., 2006. "Politico-Economic Causes of Labor Regulation in the United States: Rent Seeking, Alliances, Raising Rivals' Costs (Even Lowering One's Own?), and Interjurisdictional Competition," IZA Discussion Papers 2381, Institute of Labor Economics (IZA).
    3. Zenia Kotval & Zeenat Kotval-K & Patricia Machemer & John Mullin, 2012. "A living wage standard: A case study of the US Virgin Islands," Local Economy, London South Bank University, vol. 27(5-6), pages 541-557, August.

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    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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