Hostname: page-component-848d4c4894-tn8tq Total loading time: 0 Render date: 2024-06-30T04:10:17.406Z Has data issue: false hasContentIssue false

An Evaluation of the Living Wage: Identifying Pathways Out of In-Work Poverty

Published online by Cambridge University Press:  08 May 2017

Jo Swaffield
Affiliation:
Department of Economics, University of York E-mail: jo.swaffield@york.ac.uk
Carolyn Snell
Affiliation:
Department of Social Policy and Social Work, University of York E-mail: caz.snell@york.ac.uk
Becky Tunstall
Affiliation:
Centre for Housing Policy, University of York E-mail: becky.tunstall@york.ac.uk
Jonathan Bradshaw
Affiliation:
Social Policy Research Unit, University of York E-mail: jonathan.bradshaw@york.ac.uk

Abstract

This article reports the results of a case study on the introduction of the living wage. Three employers in the City of York became living wage employers. Using data derived from a sample survey of their employees and qualitative interviews, this article explores what impact the receipt of the living wage had on poverty and deprivation. It found that not all living wage employees were income poor or deprived, although those on living wage rates were more likely to be poor and deprived than those on even higher wages. The more important determinant of the employees’ living standards was the household they lived in, and there were a high proportion of living wage employees living in multi-unit households. Also important were the number of earners in the household and the hours worked by the living wage employee. Lone parent families and single people appeared to be most vulnerable to poverty and deprivation. In addition, whether the employee took up their entitlement to in-work benefits was critical and, using benefit checks by welfare rights experts, it was found that some were not.

Type
Articles
Copyright
Copyright © Cambridge University Press 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bennett, F. (2014) ‘“The living wage”, low pay and in-work poverty: rethinking the relationship’, Critical Social Policy, 34, 1, 4665.CrossRefGoogle Scholar
Brown, J. and Hood, A. (2016) Living Standards, Poverty and Inequality in the UK: 2015–16 to 2020–21, London: Institute for Fiscal Studies.Google Scholar
Cooke, G. and Lawton, K. (2008) Working Out of Poverty: A Study of the Low Paid and the ‘Working Poor’, London: Institute for Public Policy Research, http://www.ippr.org/files/images/media/files/publication/2011/05/working_out_of_poverty_1616.pdf?noredirect=1 [accessed 31.03.2017].Google Scholar
D'Arcy, C., Corlett, A. and Gardiner, L. (2015) Higher Ground: Who Gains from the National Living Wage? London: Resolution Foundation, http://www.resolutionfoundation.org/app/uploads/2015/09/NLW1.pdf [accessed 31.03.2017].Google Scholar
Department for Work and Pensions (DWP) (2016) ‘Households below average income 1994/95–2014/15’, https://www.gov.uk/government/statistics/households-below-average-income-199495-to-201415 [accessed 31.03.2017].Google Scholar
Elming, W., Emmerson, C., Johnson, P. and Phillips, D. (2015) New Analysis of the Potential Compensation Provided by the New ‘National Living Wage’ for Changes to the Tax and Benefit System, London: Institute for Fiscal Studies, https://www.ifs.org.uk/publications/7980 [accessed 31.03.2017].Google Scholar
Gardiner, K. and Millar, J. (2006) ‘How low-paid employees avoid poverty: an analysis by family type and household structure’, Journal of Social Policy, 35, 3, 351–69.CrossRefGoogle Scholar
Glickman, L. B. (1997) A Living Wage: American Workers and the Making of Consumer Society, Ithaca, NY: Cornell University Press.Google Scholar
Hirsch, D. (2015) Minimum Income Standards 2015, York: Joseph Rowntree Foundation, https://www.jrf.org.uk/sites/default/files/jrf/migrated/files/MIS-2015-full.pdf [accessed 31.03.2017].Google Scholar
Hood, A., Joyce, R. and Phillips, D. (2014) ‘Policies to help the low paid’, in Emmerson, C., Johnson, P. and Miller, H. (eds.), The IFS Green Budget: 2014, London: Institute for Fiscal Studies, https://www.ifs.org.uk/budgets/gb2014/gb2014.pdf, 141–70.Google Scholar
Lawton, K. and Pennycook, M. (2013) Beyond the Bottom Line: The Challenges and Opportunities of the Living Wage, London: Resolution Foundation.Google Scholar
Luce, S. (2004) Fighting for a Living Wage, Ithaca, NY: IRL Press.CrossRefGoogle Scholar
Main, G. and Bradshaw, J. (2014) Child Poverty and Social Exclusion: Final Report of the Poverty and Social Exclusion Study 2012, York: Social Policy Research Unit, University of York, http://www.poverty.ac.uk/sites/default/files/attachments/PSE-Child-poverty-and-exclusion-final-report-2014.pdf [accessed 31.03.2017].Google Scholar
Neumark, D. and Adams, S. (2001) ‘Do living wage ordinances reduce urban poverty?’, The Journal of Human Resources, 38, 3, 490521.CrossRefGoogle Scholar
Smith, A. (1776) The Wealth of Nations, Heritage Illustrated Publishing.Google Scholar
Whittaker, M. (2015) ‘O, blessed revisions: fiscal windfall and what to do with it’, Resolution Foundation, http://www.resolutionfoundation.org/app/uploads/2015/11/SR20151.pdf.Google Scholar