The left wing are pushing hard for what they call the Living Wage, which is really just a number decided arbitrarily by the Rev. Charles Waldegrave.
There is no evidence generally to support the contention that it works or even helps. But evidence is starting to mount that the so-called Living Wage is death to jobsÂ and ineffective in alleviating poverty, which is the main driver behind it.
A new report from the Fraser Institute argues that municipal laws intended to boost the wages of poorer workers threaten job prospects for the very people most likely to face poverty.
In its survey of scholarly studies, released Tuesday, the market-oriented think-tank concludes laws mandating what are called â€śliving wagesâ€ť â€” generally defined as the minimum earnings that allow full-time workers to meet the basic needs of their families and reach past low-income-tax thresholds â€” do little to help the most vulnerable workers.
â€śBoth economic theory and the evidence suggest that living wages, like minimum wages, create distortions in the labour market that have a negative impact on employment,â€ť wrote author Charles Lammam.
Faced with having to pay higher wages, employers push back by reducing overall employment, favouring more highly skilled workers and cutting back on hours and training, the report found. It cited U.S. research that showed a 100% increase in living wages, to $20 an hour from $10 an hour, reduced employment among low-skilled workers by between 12 and 17%.
â€śIndeed, there is a trade-off between the workers who benefit from a higher wage and those who endure the costs due to fewer employment opportunities,â€ť Mr. Lammam wrote.Â Read more »