Action economics? working with citizen groups in Revelstoke, BC to evaluate the impact of a living wage

Janmaat, Johannus and Harris, Lindsay and Carlaw, Kenneth and Evans, Mike (2019): Action economics? working with citizen groups in Revelstoke, BC to evaluate the impact of a living wage.

Abstract

Participatory action research has enabled communities to develop knowledge informed solutions to local challenges, challenges often involving difficult trade offs in the face of resource constraints. The challenges are typically defined by the local context, limiting both availability of data and generalizability of insights. We undertook an action economics approach with a group of Revelstoke community members deepen the collective understanding of the business impacts that may result from adoption of a living wage policy. An EXCEL™ workbook with macros enabled community members to explore possible costs and benefits. This tool clearly demonstrated the heterogeneity of business impacts and the form and scale of living wage employer benefits necessary for businesses to be no worse off. There are many context sensitive policy challenges that can benefit from an economic perspective, and therefore significant scope to share effective approaches for doing so.

• Item Type: MPRA Paper
• Language: English
• Keywords: Action research, living wage, community engaged research, poverty reduction, regional economic development
• Subjects: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J30 - General; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J33 - Compensation Packages ; Payment Methods; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R29 - Other

References

Adams, S., and D. Neumark. 2005. “Living wage effects: New and improved evidence.” Economic Development Quarterly 19(1):80–102.

Brennan, J. 2012. Enhancing Democratic Citizenship, Deepening Distributive Justice The Living Wage Movement.

Brenner, M. D., J. Wicks-Lim, and R. Pollin. 2005. Measuring the Impact of Living Wage Laws: A Critical Appraisal of David Neumark’s How Living Wage Laws Affect Low-Wage Workers and Low-Income Families. PERI Working Paper. Elsevier BV.

Buss, J. A., and A. Romeo. 2006. “The changing employment situation in some cities with living wage ordinances.” Review of Social Economy.

Carr, S. C., J. Parker, J. Arrowsmith, and P. A. Watters. 2016. “The living wage: Theoretical integration and an applied research agenda.” International Labour Review 155(1):1–24.

Chen, C. X., and T. Sandino. 2012. “Can Wages Buy Honesty? The Relationship Between Relative Wages and Employee Theft.” Journal of Accounting Research 50(4):967–1000.

City of Revelstoke. 2015. Revelstoke Community Profile.

Clain, S. H. 2008. “How living wage legislation affects U.S. poverty rates.” Journal of Labor Research 29(3):205–218.

———. 2012. “Explaining the Passage of Living Wage Legislation in the U.S.” Atlantic Economic Journal 40(3):315–327.

Coe, P. J., and J. C. H. Emery. 2004. “The disintegrating Canadian labour market? The extent of the market then and now.” Canadian Journal of Economics 37(4):879–897.

Davidson, M. C. G., N. Timo, and Y. Wang. 2010. “How much does labour turnover cost?: A case study of Australian four- and five-star hotels.” International Journal of Contemporary Hospitality Management 22(4):451–466.

Emery, J. C. H., and C. Levitt. 2002. “Cost of living, real wages and real incomes in thirteen Canadian cities, 1900-1950.” Canadian Journal of Economics/Revue Canadienne d`Economique 35(1):115–137.

Evans, B. 2017. “Alternatives to the Low Waged Economy: Living Wage Movements in Canada and the United States.” Alternate Routes 28.

Evans, B., and C. Fanelli. 2016. “A survey of the living wage movement in Canada: prospects and challenges.” Interface: A Journal for and About Movements 8(1):77–96.

Fernandez, J., T. Holman, and J. V. Pepper. 2014. “The Impact of Living-Wage Ordinances on Urban Crime.” Industrial Relations: A Journal of Economy and Society 53(3):478–500.

First Call: BC Child and Youth Advocacy Coalition. 2013. A guide to becoming a Living Wage Employer.

Fuerst, F., and P. McAllister. 2011. “Green Noise or Green Value? Measuring the Effects of Environmental Certification on Office Values.” Real Estate Economics 39(1):45–69.

Green, D. A. 2014. “What is a minimum wage for? Empirical results and theories of justice.” Canadian Public Policy 40(4):293–314.

Greenberg, J. 1990. “Employee theft as a reaction to underpayment inequity: The hidden cost of pay cuts.” Journal of Applied Psychology 75(5):561–568.

Hinkin, T. R., and J. B. Tracey. 2000. “The Cost of Turnover.” Cornell Hotel and Restaurant Administration Quarterly 41(3):14–21.

Houde, S. 2014. How Consumers Respond to Environmental Certification and the Value of Energy Information. Cambridge, MA.

Ignace, M., and R. Ignace. 2017. Secwépemc people, land, and laws. McGill-Queen’s University Press.

Ivanova, I., and L. Saugstad. 2019. Working for a Living Wage: Making Paid Work Meet Basic Family Needs in Metro Vancouver. Vancouver.

Ivanova, I., and M. Weiler. 2015. Working for a Living Wage 2015: Calculation Guide.

Jolliffe, D. 2006. “Poverty, prices, and place: How sensitive is the spatial distribution of poverty to cost of living adjustments?” Economic Inquiry 44(2):296–310.

Lester, T. W. 2011. “The Impact of Living Wage Laws on Urban Economic Development Patterns and the Local Business Climate: Evidence From California Cities.” Economic Development Quarterly 25(3):237–254.

Linneker, B., and J. Wills. 2016. “The London living wage and in-work poverty reduction: Impacts on employers and workers.” Environment and Planning C: Government and Policy 34(5):759–776.

Luce, S. 2014. “Living Wages, Minimum Wages, and Low-Wage Workers.” In What Works for Workers?: Public Policies and Innovative Strategies for Low-Wage Workers, ed. S. Luce, J. Luff, J. A. McCartin, and R. Milkman. New York: Russel Sage Foundation.

Meier, K. J., and A. Hicklin. 2007. “Employee Turnover and Organizational Performance: Testing a Hypothesis from Classical Public Administration.” Journal of Public Administration Research and Theory 18(4):573–590.

Michele Kacmar, K., M. C. Andrews, D. L. Van Rooy, R. Chris Steilberg, and S. Cerrone. 2006. “Sure Everyone Can Be Replaced … But At What Cost? Turnover As A Predictor Of Unit-Level Performance.” Academy of Management Journal 49(1):133–144.

Neumark, D. 2002. How living wage laws affect low-wage workers and low-income families. San Francisco, California.

Neumark, D., M. Thompson, F. Brindisi, L. Koyle, and C. Reck. 2013. “Simulating the Economic Impacts of Living Wage Mandates Using New Public and Administrative Data.” Economic Development Quarterly 27(4):271–283.

Neumark, D., M. Thompson, and L. Koyle. 2012. “The effects of living wage laws on low-wage workers and low-income families: What do we know now?” IZA Journal of Labor Policy 1(1):11.

Nussbaum, M. 2011. Creating capabilities.

Partridge, M. D., and D. S. Rickman. 2010. “Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis.” Regional Studies 44(10):1311–1328.

Pollin, R., and M. Brenner. 2000. Economic Analysis of Santa Monica Living Wage Proposal.

Pollin, R., and J. Wicks-Lim. 2006. Economic Analysis of the Arizona Minimum Wage Proposal.

———. 2009. An Economic Analysis of the Nashville Living Wage Proposals.

Revelstoke Credit Union. 2015. Press Release from Revelstoke Credit Union, Roberta Bobicki, CEO. Revelstoke, British Columbia.

Richards, T., M. Cohen, S. Klein, and D. Littman. 2008. Working for a Living Wage: Making Paid Work Meet Basic Family Needs in Vancouver and Victoria. Vancouver, British Columbia.

Schnietz, K. E., and M. J. Epstein. 2005. “Exploring the Financial Value of a Reputation for Corporate Social Responsibility During a Crisis.” Corporate Reputation Review 7(4):327–345.

Shaw, J. D. 2011. “Turnover rates and organizational performance.” Organizational Psychology Review 1(3):187–213.

Statistics Canada. 2013. Financial Performance Data - Industries and Business - Industry Canada.

———. 2016. “CANSIM Table 36-10-0402-01.” www.statscan.gc.ca.

Thurow, L. C. 1971. “The Income Distribution as a Pure Public Good.” The Quarterly Journal of Economics 85(2):327.

Ton, Z., and R. S. Huckman. 2008. “Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance.” Organization Science 19(1):56–68.

Tucker, J. 1989. “Employee theft as social control∗.” Deviant Behavior 10(4):319–334.

Whyte, W. F. 1989. “Advancing scientific knowledge through participatory action research.” Sociological Forum 4(3):367–385.

Woods, R. H., and J. F. Macaulay. 1989. “R for Turnover.” Cornell Hotel and Restaurant Administration Quarterly 30(1):78–90.

Zacharias, J. 2006. Revelstoke Affordable Housing Strategy and Policy Options. Revelstoke, British Columbia. ———. 2012. Revelstoke Community Poverty Reduction Strategy: Final Report. Revelstoke, British Columbia.

Zacharias, J., and M. Lenzi. 2015. A Living Wage for Revelstoke and Area. Revelstoke, British Columbia.