Working Paper: NBER ID: w10561
Authors: Scott Adams; David Neumark
Abstract: Many features of living wage laws may influence the strength of their effects on wages and employment of low-skill individuals. Echoing past research, business assistance living wage laws generate stronger wage increases and employment reductions than contractor-only laws. But broader enforcement or implementation and 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.
Keywords: living wage; employment; wages; low-skill individuals; policy analysis
JEL Codes: J2; J3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Broader living wage laws that apply to employers receiving business assistance (J38) | Higher wages (J39) |
| Broader living wage laws that apply to employers receiving business assistance (J38) | Lower employment (J63) |
| Geographic concentration of living wage laws (J38) | Stronger wage effects (J39) |
| Geographic concentration of living wage laws (J38) | Stronger employment effects (J68) |
| Living wage laws with community hiring provisions (J38) | Greater positive effects on wages (J39) |
| Living wage laws with community hiring provisions (J38) | Stronger negative effects on employment (J65) |
| Living wage laws with broader enforcement and implementation (J38) | Sharper effects on wages (J31) |
| Living wage laws with broader enforcement and implementation (J38) | Sharper effects on employment (F66) |