These programs include the federal Earned Income Tax Credit, which provides government payments to low-wage workers, as well as help with transportation, job training and child care. This argument persuaded the Vermont legislature to shelve a living-wage proposal. A living-wage backlash has bubbled up in other states, too. Only Louisiana's passed. Gauging the Impact Not surprisingly, advocates and critics disagree on the impact of living-wage laws.
Proponents maintain that the laws help workers out of poverty and impact employers only negligibly.
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.