This study analyzes those three questions from both prospectives to determine if living wage legislation does what it is supposed to do.
What Is The Living Wage And What Is Its Scope?.
There are always at least two sides to every issue, other wise it wouldn't be a controversy. The advocates for living wage legislation define the living wage as follows: The living wage idea is to raise an individuals income above the federal poverty level for a familys of four. Thus, individuals would not have to raise their family in poverty (Pollin & Luce). The challengers of living wage legislation look at this question in the following light: The living wage movement is an organized effort to force certain employers to pay wage rates based on a classification of "need" rather than "skill" (Employment 2000). In this instance, both sides of the controversy are right. To put this in economic terms, the living wage legislation would be a "Price Floor"(Smith). Local, State, or Federal government would establish a wage, for certain employees, and not allow them to be paid less than that amount (See Figure-1).
However, the living wage legislation that has passed has just been mandated for companies doing business with Local and State governments according to Pollin, & Luce (1998). However, Robert Pollin, economist and proponent of living wage legislation stated, .
"The viability of living wage proposals, whether applied to government contractors alone or to all companies in a region, invites consideration of an even more ambitious proposal of a national living wage" (Employment 2000, p. 4).
Pollin's statement leaves little doubt that the ultimate goal of the advocates for a living wage is a national living wage law.
Who is the living wage supposed to help?.
The comprehensive definition, from both pro and con advocates of the living wage defines the target group for the living wage legislation as the working poor (eg.
