Decent
Jobs Can Co-Exist With Healthy Economy
Los Angeles Daily News - June 07, 2005
By Eric Garcetti
Over
the past decade, more than 125 cities across the country have
passed living-wage laws as a way to address the proliferation
of working poverty.
Invariably,
opponents of these policies have warned of economic catastrophe.
Not only will living-wage laws harm businesses, they argue,
but they will hurt the very people they are intended to help
through massive job cuts by employers.
Relatively
little research has been done to measure the actual impact
of living-wage laws. Now a new study from University of California
researchers has shed some real empirical light on the Los
Angeles living-wage ordinance. Passed in 1997 amid much controversy,
the law covers city contractors and other firms that do business
with the city.
And
here's the big news: The naysayers were wrong.
The
study -- which took four years to complete and used rigorous
random sampling methodology to ensure accurate results --
finds that L.A.'s living-wage law has increased pay for an
estimated 10,000 jobs, with minimal employment reductions.
The huge job loss predicted by critics simply did not materialize.
Equally
important, the study concludes that most of the workers who
benefit from the living wage are from poor or low-income families,
and that only 4 percent are teenagers. This finding undermines
another favorite argument of living wage critics -- that pay
raises resulting from these laws are not well targeted at
low-income workers.
The
study dispels yet another fallacy, that under the living wage,
workers would sacrifice most of their pay increases to higher
taxes and reduced benefits. In fact, most workers retained
more than 70 percent of wage increases after taxes, while
few were likely to see cuts in their benefits.
The
study no doubt comes as unwelcome news to living-wage opponents
in Miami, Phoenix, Memphis and the dozen other cities across
the nation where living-wage policies are being considered.
But perhaps it's time for these critics to step back from
the rhetorical breach and acknowledge the powerful truth suggested
by this report: We don't have to choose between decent jobs
and a healthy economy. We can have both.
The
myth that higher wages will destroy our business climate is
a marginal idea with unfortunate persistence. It's a myth
that's used to perpetuate the appalling gap between rich and
poor, which continues to grow at an alarming rate.
Not
only is this idea inaccurate, it is fundamentally at odds
with a core conviction that has nurtured the American dream
for generations. This country was built on the belief that
if you work hard, you can provide a decent life to your family.
Tragically,
tens of millions of Americans today experience a different
reality. Outsourcing, downsizing and the Wal-Martization of
our economy have turned working poverty into a national epidemic,
and a national shame.
Living-wage
laws, though limited in scope, offer a potent rebuke to the
prevailing acceptance of widespread economic deprivation among
hard-working Americans. These policies advance the wholly
American idea that people working full time should not be
relegated to poverty, and should not have to rely on government
assistance for food, health care and housing.
One
troubling finding in the new report by the UC economists is
that, even with the living wage, more than 40 percent of affected
workers continue to depend on at least one government anti-poverty
program. One-third of these workers lack health insurance,
while the children of more than 50 percent either rely on
public-insurance programs or are uninsured.
The
living wage has helped low-income workers, but clearly Los
Angeles, and the nation, must do more. As we press for more
job training, more access to health care and more work-force
housing, we should be secure in adding the living wage to
our tool kit. And we should not hesitate to embrace the vision
of a just society until it becomes a reality.
Eric
Garcetti represents the 13th District in the Los Angeles City
Council.
|