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How Living Wage Laws Affect Low-Wage Workers and Low-Income Families

By David Neumark

Since 1994, nearly 40 cities in the United States have passed living wage ordinances. These ordinances mandate that businesses under contract with the city, and in some cases businesses receiving assistance from the city, pay employees a wage sufficient to lift their families out of poverty. This report examines the actual experiences of cities implementing such laws, focusing in particular on the following questions:

  • Do living wage laws raise wages for at least some low-wage workers? Are wage gains for low-wage workers offset by either reductions in employment or the amount of hours worked as employers seek to accommodate the additional labor costs?
  • Do living wage laws achieve their stated policy objective of improving economic outcomes for low-income families? Do the laws reduce urban poverty?
  • Given the stated antipoverty goal of living wage campaigns, why do the laws generally restrict coverage to city contractors, rather than imposing wage floors for broad groups of workers?

Report

California’s Future

By Ellen Hanak, Laura Hill, Hans Johnson, Caroline Danielson ...

This multi-topic publication highlights the state’s most pressing long-term policy challenges in several key areas: criminal justice, economy, education, safety net, and water and a changing climate.

Report

Policies for Creating and Keeping Jobs in California

By David Neumark, Emma Wohl

State efforts to spur job creation include 21 programs ranging from tax credits to worker training. Three policies offer strong evidence indicating they create jobs or increase employment in California. New programs—and programs with weak evidence—need to have built-in features that allow deeper evaluation.

Report

Do California’s Enterprise Zones Create Jobs?

By David Neumark, Jed Kolko

California’s enterprise zone program was established to spur business and job creation in economically distressed areas. Offering tax credits and other incentives to businesses throughout the state, it is California’s largest economic development program. But does it work? This report finds that enterprise zones have no overall effect on job growth. There are some positive findings: for example, the program raises employment more in zones with smaller manufacturing shares, and marketing and outreach efforts seem to be helpful. But the report’s main finding calls into question the wisdom of investing in the program as it stands.

Occasional Paper, Report

Interstate Business Relocation: An Industry-Level Analysis

By David Neumark, Junfu Zhang, Jed Kolko

In this report, using data covering all establishments ever located in California during 1992-2003, we study interstate business relocation and other establishment and employment dynamics in different industries.

Report

Supporting Student Parents in Community College CalWORKs Programs

By Shannon McConville, Sarah Bohn, Bonnie Brooks

All community colleges run support programs for students who receive CalWORKs, the state’s cash assistance program for poor families with children. Students do better when enrolled in these support programs, but completion rates are low. How can colleges help more CalWORKs students succeed?

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