1	Examining the Evidence: The Impact of the L.A. Living Wage Ordinance on Workers and Businesses
2	About This Study Co-authored by University of California economists and Research Directors at the L.A. Alliance for a New Economy: David Fairris, UC Riverside David Runsten, UCLA Carolina Briones and Jessica Goodheart, LAANE Funded by the Ford Foundation, Los Angeles World Airports, and the University of California.
3	About the Living Wage Living wage laws set wage and benefit standards for companies that do business with the government. Over 120 local governments have passed living wage laws. Other major cities with living wage laws include New York, Boston, San Francisco and Chicago. 17 cities and counties are currently considering living wage policies.
4	About the Los Angeles Living Wage Law Enacted in 1997. One of first major cities to pass such a law. Covers city contractors, firms operating on city property, lessees, financial aid recipients. Requires businesses to pay $10.03 an hour, or $8.78 plus a $1.25 contribution to health care benefits. Provides workers with 12 paid days off and 10 unpaid days off per year.
5	The Living Wage Debate Living wage laws have generated debate across the country. Proponents say laws are needed to address increase in low-wage jobs. Opponents argue that laws will hurt businesses and workers.
6	Living Wage Research Little research on living wage laws. Few retrospective studies. No studies using random sample surveys of affected workers and businesses.
7	What Makes This Study Unique First-ever random sample surveys of workers and businesses affected by the living wage. Random sampling techniques ensure that survey findings are representative of the entire population being studied. Control group survey of non-living wage firms helps to isolate the effects of the living wage.
8	Major Findings Pay increases for an estimated 10,000 jobs. Number of jobs with pay increases is among the largest in the nation. Raises affected mostly poor and low-income families. Reductions in employment were minimal.
9	The Living Wage Affects Primarily Poor and Low-Income Families 71 percent of affected workers have a high school education or less. Only 4 percent are teenagers. Affected workers are more likely to be women, to be African-American, and to be single parents than other low-wage workers.
10	The Living Wage Affects Primarily Poor and Low-Income Families
11	Some Improvements in Health Benefits Firms did not set up new health benefits plans. Improvements to existing plans affected 2,200 jobs: Larger employer contributions to the health plan Extending coverage to more workers
12	Job Reductions Were Minimal 81 percent of affected firms have adapted without eliminating jobs. Job reductions amounted to 1 percent of affected jobs.
13	Employers Saw Some Benefits Reductions in employee turnover and absenteeism. 16 percent of the cost of the wage increase recovered through reductions in turnover.
14	Businesses adapted to the living wage in a variety of ways Cutting fringe benefits and overtime. Hiring more highly trained workers. Cutting profits. Passing on costs to the city and the public.
15	Workers Have Benefited, But Still Struggle to Get By 36 percent of workers said their quality of life improved. 31 percent of workers still lack health benefits. More than 50 percent of their children are uninsured or rely on public health programs. 44 percent of workers rely on at least one government assistance program.
16	Conclusions and Policy Implications The living wage primarily benefits workers in poor and low-income families. Most employers adapted to the policy with minimal job reductions. Employers have recovered some of the increased costs through reductions in turnover and absenteeism. The living wage did not result in new health care plans for workers. At the current wage level, more than 40 percent of workers rely on government assistance.