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. Companies that hold contracts for labor-intensive services, such as janitorial work, may feel more impact, she says. Opponents say the cost of higher wages gets passed on to taxpayers in the form of higher bids on government contracts.