A Measure of Fairness: The Economics of Living Wages and Minimum Wages in the United States
Abstract:
In early 2007, there were approximately 140 living wage ordinances in
place throughout the United States. Communities around the country
frequently debate new proposals of this sort. Additionally, as a result
of ballot initiatives, twenty-nine states and the District of Columbia,
representing nearly 70 percent of the total U.S. population, maintain
minimum wage standards above those set by the federal minimum wage.
In
A Measure of Fairness, Robert Pollin, Mark Brenner, Jeannette
Wicks-Lim, and Stephanie Luce assess how well living wage and minimum
wage regulations in the United States serve the workers they are
intended to help. Opponents of such measures assert that when faced
with mandated increases in labor costs, businesses will either lay off
workers, hire fewer low-wage employees in the future, replace
low-credentialed workers with those having better qualifications or,
finally, even relocate to avoid facing the increased costs being
imposed on them.
The authors give an overview of living wage and
minimum wage implementation in Louisiana, New Mexico, Arizona,
California, Massachusetts, and Connecticut to show how these policies
play out in the paychecks of workers, in the halls of legislature, and
in business ledgers. Based on a decade of research, this volume
concludes that living wage laws and minimum wage increases have been
effective policy interventions capable of bringing significant, if
modest, benefits to the people they were intended to help.
Richard Freeman of Harvard
University’s Economics Department writes: “The study of living wages in
the United States has moved from an odd peripheral topic to a major
issue in economic policy analysis largely because of the research
reported in A Measure of Fairness. This volume defines the
issues and provides a glow of empirical sunlight on an economic topic
traditionally shrouded with ideology instead of evidence.” And Carol
Oppenheimer and Morty Simon, living wage organizers in Santa Fe write
that A Measure of Fairness “is a must-read for local activists, economists, and all political leaders concerned with economic justice.”
>> In this related interview,
Jen Kern, Director of the ACORN Living Wage Resource Center and a
linchpin of the living wage movement, offers her perspective on PERI's
role in the living wage movement.
>> Order A Measure of Fairness from Cornell University Press