The Impact of the Real Living Wage

Abstract

Abstract This chapter presents evidence of the effects of the Living Wage campaign. First, it examines the redistributive effect of the campaign, presenting evidence on the number and characteristics of workers that have gained from the Living Wage. Second, it looks at the impact of the campaign on employers and presents evidence showing a widespread but modest positive business effect. The chapter concludes by looking at some of the wider effects of the campaign. One element looks at the impact on individuals and shows that the Living Wage has often served to enhance the ‘capability’ of those on low incomes, allowing them to lead less constrained lives. Another element looks at institutional effects and it is shown that the spread of the Living Wage has neither eroded nor reduced the need for other forms of regulation through collective bargaining and employment law. Civil regulation, it is argued, can coexist with and reinforce these other methods.