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The Effects of Living Wage Laws: Evidence from Failed and Derailed Living Wage Campaigns

Scott Adams () and David Neumark ()

No 11342, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Living wage campaigns have succeeded in about 100 jurisdictions in the United States but have also been unsuccessful in numerous cities. These unsuccessful campaigns provide a better control group or counterfactual for estimating the effects of living wage laws than the broader set of all cities without a law, and also permit the separate estimation of the effects of living wage laws and living wage campaigns. We find that living wage laws raise wages of low-wage workers but reduce employment among the least-skilled, especially when the laws cover business assistance recipients or are accompanied by similar laws in nearby cities.

JEL-codes: J38 J58 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: 2005-05
Note: LS
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