Living Wage Effects: New and Improved Evidence

Public Policy Institute of California Working Paper No. 2003.10

Posted: 5 Jun 2003

See all articles by Scott J. Adams

Scott J. Adams

University of Wisconsin - Milwaukee - Department of Economics

David Neumark

University of California, Irvine - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Multiple version iconThere are 2 versions of this paper

Date Written: April 2003

Abstract

This paper explores the effects of living wages on low-wage workers and low-income families. Using data for 1996-2002, it updates an earlier analysis, addresses criticisms of it, and confirms the finding that business assistance living-wage laws reduce overall urban poverty at the cost of some disemployment. It also expands the analysis to examine other distributional effects, finding that living wages help families slightly below and above the poverty line without increasing the depth of poverty among families that remain poor. Finally, the paper suggests that the poverty reductions generated by living wages stem from income gains for those with higher wages or skills who are initially in poor families rather than for those at the very bottom of the wage and skill distribution.

Keywords: Living wages, poverty

JEL Classification: J2, J3, I3

Suggested Citation

Adams, Scott J. and Neumark, David, Living Wage Effects: New and Improved Evidence (April 2003). Public Policy Institute of California Working Paper No. 2003.10, Available at SSRN: https://ssrn.com/abstract=397700

Scott J. Adams

University of Wisconsin - Milwaukee - Department of Economics ( email )

3210 N. Maryland Avenue, Bolton Hall 802
Bolton Hall 802
Milwaukee, WI 53211
United States
414-229-4212 (Phone)

David Neumark (Contact Author)

University of California, Irvine - Department of Economics ( email )

3151 Social Science Plaza
Irvine, CA 92697-5100
United States
949-824-8496 (Phone)
949-824-2182 (Fax)

HOME PAGE: http://www.socsci.uci.edu/~dneumark/

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
747
PlumX Metrics