Estimating the Economic Impacts of Living Wage Mandates Using Ex Ante Simulations, Longitudinal Estimates, and New Public and Administrative Data:  Evidence for New York City

Neumark, David; Thompson, Matthew D.; Brindisi, Francesco; Koyle, Leslie; Reck, Clayton

doi:10.3386/w18055

Cited by 3 publications

(6 citation statements)

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“…These estimated effects capture the distribution of wage and employment (and hours) effects on families at different points of the income distribution. Again, the methods follow Adams and Neumark (2005a) and details are provided in Neumark et al (2012). This analysis arrives at a preferred estimated effect of −0.035, which implies, for example, that a 100% increase in a business assistance living wage reduces the poverty rate by 3.5 percentage points (again not statistically significant but consistent across many specifications and samples and significant in some).…”

Section: Simulating the Effects Of The Living Wage In New York Citymentioning

confidence: 88%

“…There were a number of complications stemming from changes in the classification of geographic areas in the CPS. Details are provided in Neumark et al (2012). That same paper also presents a lengthy discussion of earlier criticisms of the research using the CPS data to estimate the effects of living wage laws, concluding that the CPS data and the methods used give valid results.…”

Section: Simulating the Effects Of The Living Wage In New York Citymentioning

confidence: 97%

“…The purpose of this article is not to revisit this debate, although many of the estimates presented rely on the methods that have been subject to debate. Our new longitudinal estimates based on other cities are not the focus of the article; readers are referred to Neumark, Thompson, Brindisi, Koyle, and Reck (2012) for details and an extensive discussion of the debate over these methods. 3 The methods used in the simulations can be applied to other cities, whether using our longitudinal methods and estimates or using other estimates or assumptions regarding behavioral responses.…”

Section: Introductionmentioning

confidence: 99%

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Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data

Neumark

Thompson

Brindisi

et al. 2013

Economic Development Quarterly

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Policy researchers often have to estimate the future effect of imposing a policy in a particular location. There is often evidence on the effects of similar policies in other jurisdictions but no information on the effects of the policy in the jurisdiction in question. And the policy may have specific features not reflected in the experiences of other areas. It is then necessary to combine the evidence from other locations with detailed information and data specific to the jurisdiction in question, with which to simulate the effects of the policy in the new jurisdiction. We illustrate and use this approach in estimating the impact of a proposed living wage mandate for New York City, emphasizing how our ex ante simulations make use of detailed location-specific information on workers, families, and employers using administrative data and other new public data sources.

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Section: Simulating the Effects Of The Living Wage In New York Citymentioning

confidence: 88%

Section: Simulating the Effects Of The Living Wage In New York Citymentioning

confidence: 97%

Section: Introductionmentioning

confidence: 99%

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Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data

Neumark

Thompson

Brindisi

et al. 2013

Economic Development Quarterly

Self Cite

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show abstract

“…These estimated effects capture the distribution of wage and employment (and hours) effects on families at different points of the income distribution. Again, the methods follow Adams and Neumark (2005b), and details are provided in Neumark et al (2012). This analysis arrives at a preferred estimated effect of −0.035, which implies, for example, that a 100% increase in a business assistance living wage reduces the poverty rate by 3.5 percentage points (again not statistically significant, but positive across many specifications and samples, and significant in some).…”

Section: Estimated Effects On Low-wage Workers and Low-income Familiesmentioning

confidence: 92%

Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data: Evidence for New York City

Neumark

Thompson²,

Brindisi

et al. 2013

SSRN Journal

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Simulating the Economic Impacts of Living Wage Mandates UsingNew Public and Administrative Data: Evidence for New York City * Policy researchers often have to estimate the future effect of imposing a policy in a particular location. There is often evidence on the effects of similar policies in other jurisdictions, but no information on the effects of the policy in the jurisdiction in question. And the policy may have specific features not reflected in the experiences of other areas. It is then necessary to combine the evidence from other locations with detailed information and data specific to the jurisdiction in question, with which to simulate the effects of the policy in the new jurisdiction. We illustrate and use this approach in estimating the impact of a proposed living wage mandate for New York City, emphasizing how our ex ante simulations make use of detailed location-specific information on workers, families, and employers using administrative data and other new public data sources.

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“…Much of this scholarship has used economic data to explore or forecast LW effects on employment nationally (e.g. NZ Treasury, 2013;Maloney and Gilbertson, 2013) or at the city or county levels (Brenner, 2005;Neumark et al, 2012;Fairris and Fernandez Bujanda, 2007;London Economics, 2009;Ivanova and Klein, 2013). In their review, Maloney and Gilbertson (2013, p. v) stressed the "considerable evidence in [international] literature that implementing a living wage directly increases the actual wages of targeted workers" and furthermore that "(p)aying a living wage can increase productivity, reduce worker turnover and absenteeism, and improve the quality of future job applicants.…”

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confidence: 99%

Perceptions of living wage impacts in Aotearoa New Zealand: towards a multi-level, contextualised conceptualisation

Parker

Arrowsmith

Young‐Hauser

et al. 2022

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PurposeThe study maps workplace stakeholders’ perceptions of living wage (LW) impacts in New Zealand. Empirical findings inform an inaugural model of LW impacts and contingent factors at individual, organisation, sector/industry and national levels.Design/methodology/approachData from a national employee survey, semi-structured interviews with business sector representatives, and staff in two LW organisation cases were subjected to thematic content analysis.FindingsInformants emphasised anticipated LW impacts amid complex workplace and regulatory dynamics. Employers/managers stressed its cost effects. However, employees, human resource (HR) advocates and other LW proponents highlighted employee “investment” impacts that improve worker productivity and societal circumstances.Research limitations/implicationsThis study highlights the need for further context-sensitive LW analysis. An initial model of LW impacts provides a framework for comparative and longitudinal work in other national contexts.Practical implicationsThe proposed model categorises perceived LW effects and can inform policy development. Findings also stress a need for cross-agency initiatives to address LW concerns, including a key role for HR.Social implicationsThe findings highlight perceptions of a LW impacting within and beyond the workplace. Whilst higher-quality management is seen to encourage better-informed decisions about “going living wage”, a LW's positive socio-economic impacts require multi-lateral initiatives, suggesting that those initiatives are is part of wider obligations for policy makers to encourage decent living standards.Originality/valueThis study provides a much-needed and inaugural focus on the intertwined workplace and wider impacts of a LW, extending extant econometric analyses. The paper also synthesizes different data sources to develop an inaugural, context-sensitive model of perceived LW effects.

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Estimating the Economic Impacts of Living Wage Mandates Using Ex Ante Simulations, Longitudinal Estimates, and New Public and Administrative Data: Evidence for New York City

Cited by 3 publications

References 12 publications

Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data

Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data

Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data: Evidence for New York City

Perceptions of living wage impacts in Aotearoa New Zealand: towards a multi-level, contextualised conceptualisation

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