Living Wage Policies at the San Francisco Airport: Impacts on Workers and Businesses

Reich, Michael; Hall, Peter; Jacobs, Ken

doi:10.1111/j.0019-8676.2004.00375.x

Cited by 56 publications

(73 citation statements)

References 9 publications

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“…Higher wages, per the dynamic monopsony model, may also reduce vacancies and lead to a higher level of employment and hours. Empirical evidence on the MW/job attachment link is limited, but generally finds lower turnover resulting from the MW (e.g., Dube et al, 2007;Reich et al, 2005;and Fairris and Reich, 2005 for living wage ordinances).…”

Section: Turnovermentioning

confidence: 99%

Minimum Wage Channels of Adjustment

Hirsch

Kaufman

Zelenska³

2011

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. (MW) is analyzed using a sample of quick-service restaurants in Georgia and Alabama. Store-level biweekly payroll records for individual employees are used, allowing us to precisely measure the MW compliance cost for each restaurant. We examine a broad range of adjustment channels in addition to employment, including hours, prices, turnover, training, performance standards, and non-labor costs. Exploiting variation in the cost impact of the MW across restaurants, we find no significant effect of the MW increases on employment or hours over the three years. Cost increases were instead absorbed through other channels of adjustment, including higher prices, lower profit margins, wage compression, reduced turnover, and higher performance standards. These findings are compared with MW predictions from competitive, monopsony, and institutional/behavioral models; the latter appears to fit best in the short run.JEL Classification: J20, J30

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Section: Turnovermentioning

confidence: 99%

Minimum Wage Channels of Adjustment

Hirsch

Kaufman

Zelenska³

2011

SSRN Journal

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“…On the plus side, ISR schemes designed to harness pragmatic legitimacy through network effects can lead to positive spillover and multiply positive impacts. For example, Reich et al (2005) identified spillover effects from the voluntary adoption of a living wage, as other workers not directly covered by the scheme also experienced some increase in their level of pay. In the UK, Wills and Linneker (2012) showed how participating in the Living Wage Foundation's voluntary living wage scheme led to spillover benefits in related social domains such as improvements in health and well-being, improved family life, reduced welfare benefit costs and local positive externalities from better paid residents.…”

Section: Network Effects and Moral Legitimacymentioning

confidence: 99%

Marking Their Own Homework: The Pragmatic and Moral Legitimacy of Industry Self-Regulation

Bowen

2017

J Bus Ethics

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When is industry self-regulation (ISR) a legitimate form of governance? In principle, ISR can serve the interests of participating companies, regulators and other stakeholders. However, in practice, empirical evidence shows that ISR schemes often under-perform, leading to criticism that such schemes are tantamount to firms marking their own homework. In response, this paper explains how current management theory on ISR has failed to separate the pragmatic legitimacy of ISR based on selfinterested calculations, from moral legitimacy based on normative approval. The paper traces three families of management theory on ISR and uses these to map the pragmatic and moral legitimacy of ISR schemes. It identifies tensions between the pragmatic and moral legitimacy of ISR schemes, which the current ISR literature does not address, and draws implications for the future theory and practice of ISR.

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“…On the production side, these studies find that employers benefit from reduced staff turnover (Reich et al, 2005;Howes, 2005), increased worker loyalty and productivity (Fehr and Falk, 2002), and marginal rates of worker substitution of low for higher skilled workers (Fairris et al 2005, Reich et al, 2003, 2005.…”

Section: The Potential Impacts Of Wage Rate Interventionsmentioning

confidence: 99%

“…Evidence of the impacts on hours and employment are mixed with findings of both job expansion (Reich et al, 2005) and contraction, with modest impacts on poverty rates Adams, 2000, 2003). In addition, evidence on the impact of other local state minimum wages policies in the US, find small reductions in hours and no adverse effects on employment (Dube et al 2010;Reich et al 2014).…”

Section: The Potential Impacts Of Wage Rate Interventionsmentioning

confidence: 99%

The London living wage and in-work poverty reduction: Impacts on employers and workers

Linneker

Wills

2016

Environ Plann C Gov Policy

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In the UK, a campaign for the living wage has emerged as a civil society initiative to reduce in-work poverty. This article reports empirical evidence from a study of employers adopting the London Living Wage and the benefits from this intervention, as reported by their workers. Implementation strategies to cover higher wage costs varied, from clients meeting full costs, to reduced employer profit, to reductions in hours and employment. There were strong substitution effects from low to higher qualified workers. The evidence suggests that while there were worker benefits from the living wage, they were not automatic, as higher wage rates did not necessarily translate into higher incomes due to variations in hours of work. Workers reported more in-work benefits, than family or financial benefits. In-work poverty reduction was limited by large concentrations of part-time living wage jobs with few hours, small income increases and the rising costs of living.

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Living Wage Policies at the San Francisco Airport: Impacts on Workers and Businesses

Cited by 56 publications

References 9 publications

Minimum Wage Channels of Adjustment

Minimum Wage Channels of Adjustment

Marking Their Own Homework: The Pragmatic and Moral Legitimacy of Industry Self-Regulation

The London living wage and in-work poverty reduction: Impacts on employers and workers

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