Opponents contend that the laws displace the lowest-skilled workers, hurt employers and burden taxpayers. Experts on both sides believe that it's too soon to tell if living-wage laws really work. Most studies to date are prospective examinations of proposed ordinances. D.C. For example, the city of Los Angeles' ordinance covers only about 7,000 workers out of a total workforce of 1.8 million. Still, there's no shortage of speculation about the impact of the living wage.
Economists do think that the laws help at least some low-income workers out of poverty.
There's always winners and losers. Economists disagree on the extent to which living-wage laws displace workers. Critics say that higher wages draw more qualified, educated workers and leave people with no and very low skills unemployed. Other experts say the job-loss factor is minimal, in the 1 percent to 2 percent range. It's unlikely, he says, but employers may fill new jobs with higher-skilled employees.