Jim Rose from the Taxpayers’ Union has a rather nice report up on problems with living wage policies. Here’s their summary:
The report’s key findings are:
- Seventeen Wellington City Council employees lost their jobs after being under the skill level required for the living wage.
- Councils hire on merit, so candidates under the skill level commensurate with the living wage will be crowded out by higher-skilled candidates.
- There is no consensus or scientific basis for the calculation of a living wage. Any calculations are politically subjective.
- Any living wage in New Zealand will be abated by up to 40% by decreases in government transfers and increased income tax obligations.
- Living wages shift the burden from means-tested taxpayers to ratepayers and business owners.
- Below-living-wage employment allows for in-work training, where employees tradeoff lower wages for the opportunity to learn skills that increase their future earning potential.
Living wage policies do less to improve…
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Utopia, you are standing in it! 
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