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Attitudes toward living wages final with updated with audio

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Attitudes Towards Living Wages

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Attitudes toward living wages final with updated with audio

  1. 1. Attitudes Toward Living Wages Group Project Outline Family Economics 5833 Fall 2012 Crystal Dyess-Carroll Thomasina Desouza Charee Fontenette Tiffany Harris Jessica Virgil
  2. 2. Introduction Living wages is defined by Seccombe (2007) as the minimumincome needed that enables a family to afford the necessities and basic needs (i.e., food, clothing and shelter) to live. Class Views on living Wages• The lower class view• The working poor view• The middle class view• The wealthy view All income classes are affected by the differences in living wages
  3. 3. Review of Literature Proponents of living wage in Opponents of living wage in the United States the United States• Higher wages increase work • Living wages increase productivity wages but decrease job• Living wages decrease work opportunities absenteeism, employee • Creates a hostile work turnover environment• Living wage laws directly • Earned income tax credit is effect low wage workers a better solution than living• Higher wages means wage decrease in government subsidies(Seccombe, 2007; Pollin, 2007) Seccombe, 2007; Pollin, 2007)
  4. 4. Review of Literature • 1990’s brought a rise of living wage campaigns and activists in the United States • More than 140 cities, counties, and universities in the US have living wage ordinances • Movements have been found in cities such as Chicago, Los Angeles, and San Francisco • Activist also focused on statewide living wage movements • Several research studies have been conducted to determine the impact and reactions of living wages Luce (2012)
  5. 5. Review of Literature Recent research investigates living wages, its effect on poverty rates and attitudes towards living wages of the middle and working class citizens. ▫ Clain (2008) examined the living wage legislation and how it affects U.S. poverty rates. ▫ The U.S. would see an increase in living wages if all U.S. counties would adhere to the state and local wage polices . ▫ Minimum wages are not being increased due to labor force laws not being enforced. ▫ The living wage legislator is not the answer to alleviate poverty. ▫ Clary (2009) presented Adam Smith’s ideas that discussed living wage issues experienced by individuals working for minimum wage. ▫ Living wages issues are more complex than just making money . ▫ The lower income class earning minimum wage are often unable to afford the basic needs. ▫ The legislator could help improve living wages by enforcing polices. ▫ Increased wages will help the low-income class overcome poverty.
  6. 6. Review of Literature Research further examines living wage increases and its affects on urban poverty and single mothers. ▫ Neumark and Adams (2003) , investigated living wage increases and how it has affected urban poverty. ▫ Researchers found positive effects of living wages with increased wage gains and hours worked, but negative effects on employment. ▫ Living wage increases moderately reduces poverty in urban areas. ▫ Sabia, (2008) investigated minimum wage increase and its effect on single parent families. ▫ As minimum wages increased employment hours decreased for single mothers. ▫ Minimum wage increase is not an effective action to helping reduce the poverty rate amongst single mothers. Neumark & Adams (2003); Sabia (2008)
  7. 7. Review of Literature Global View of Living Wages  There are similarities and differences with regards to attitudes towards the living wage in the US and UK, however the US is more likely to express negative attitudes towards the living wage than the UK (Karjanen, 2010).  The US is more likely to blame the individual for their low economic status, whereas the UK is more likely to attribute economic status to strong structural impediments for income and occupational mobility (Karjanen, 2010). The difference is attributed to failure of progressive economic policies and the lack of labor unions in the US (Karjanen, 2010).
  8. 8. Theoretical Framework  Social workers have stepped up to the plate to advocate for the working poor (Chandler, 2009). They have also helped with relieving attitudes towards living wages by providing awareness to the community. Wage Fund Theory  Adam Smith’s ideological theory on living wages discusses the need to “maintain justice” (Clary, 2009). o Smith’s idea was established to cohesively balance expenses and living wages so that everyone can live comfortably.  The idea of “maintaining justice” is that everyone that works hard should get what they work for and be able to make it in society without having to worry about becoming poor.  The Wage Fund Theory states that wages are determined by the magnitude of the workforce and the capital of the country.
  9. 9. Theoretical Framework  In examining the United States ideologies and United Kingdom, it is shown that the working poor continue to remain poor (Karjanen, 2010). Low wages are the main reasons that working persons remain amongst the working poor.  The Wage Fund Theory has been criticized because there is no emphasis on efficiency and productivity of labor.  It is also unclear on where the fund paid to the employees will come from. In order to increase the worker’s wages, a fund needs to be established and this may result in laying off employees. The less workers, the more funds you have to disburse.  Although the minimum wage law supports employees because employers cannot pay them less than the minimum wage, the minimum wage, however, does not protect them from the struggles and adversities they will most likely come upon.
  10. 10. Implications and Conclusion • Living wage activists and social workers are put at the forefront so that these issues can be resolved (Chandler, 2009; Luce, 2012). • The theories that have been provided by social workers, Adam Smith, as well as the United States and United Kingdom’s ideologies show a great need for advocating for those who are the working poor (Clary, 2009; Karjanen, 2010; Sabia, 2008). • In light of everything policy makers are doing what they can to help working single mothers who are working on minimum wage make their way out of poverty by making wage increases (Sabia, 2008). • Of course, living expenses do increase and it is important that social workers maintain communication with all types of family structures so that families can live above the poverty line and not have to worry about surviving (Pollin, 2007; Sabia, 2008).
  11. 11. ReferencesChandler, S. K. (2009). Working hard, living poor: Social work and the movement for livable wages. Journal of Community Practice, 17:170-183. doi: 10.1080/107054209 02856159Clain, S. (2008). How living wage legislation affects U.S. poverty rates. Journal of Labor Research, 29(3), 205-218. doi:10.1007/s12122-007-9028-8Clary, B. J. (2009). Smith and living wages: Arguments in support of a mandated living wage. American Journal of Economics & Sociology, 68(5), 1063-1084. doi:10.1111/j.1536-7150.2009.00653Karjanen, D. (2010). Opposition to the living wage: Discourse, rhetoric, and American exceptionalism. Anthropology Of Work Review, 31(1), 4-14.Kingsolver, A. (2010). Introduction: Researching living wage possibilities globally. Anthropology of Work Review, 31(1), 4-14.Luce, Stephanie (2012). Living wage policies and campaigns: Lessons from the United States. International Journal of Labour Research 4(1), 11-26.Neumark, D.,& Adams, S. (2003). Do living wage ordinances reduce urban poverty? The Journal of Human Resources, 38(3), 490-521.Pollin, R. (2007). Economic prospects: Making the federal minimum wage a living wage. New Labor Forum, 16(2), 103-107.Sabia, J. (2008). Minimum wages and the economic well-being of single mothers. Journal of Policy Analysis and Management, 27(4), 848-866. doi:10.1002/pam.20379Seccombe, K. (2007). Families in poverty. New York, NY: PearsonWills, J. (2009). The living wage. Soundings , 42, 33-46.

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