Thinking about Local Living Wage Requirements

Abstract

This article reviews our knowledge about the living wage, a local government requirement that employers receiving city contracts or economic development subsidies pay a living wage above the federal minimumwage. More than 100local governmentsin the United States have adopteda living wage. The article concludes that moderate living wage requirements applied to local government, and to contractors’ and grantees’ employees who are funded by the local government, are the most likely to be beneficial. Living wage coverage for employers receiving economic development subsidies are more likely to be harmful if the city economy is weak.