This research aimed to improve understanding of the implications of introducing a living wage policy in Wales.
In March 2009, The Welsh Assembly Government (WAG) commissioned an exploratory study into the implications of introducing a Living Wage in Wales. This report presents the interim findings from the first phase of the analysis.
The objective of this research was to improve understanding of the implications of introducing a Living Wage policy in Wales. The aim was to develop a robust assessment of the likely benefits and costs of such a policy. In particular, the study undertook to:
- review existing evidence;
- estimate the size of the likely gain to workers who were covered by a Living Wage policy, taking into account the interaction of such a policy with the UK tax and benefit system;
- consider the effectiveness of a Living Wage policy as a means of (i) reducing child poverty and (ii) raising the incomes of poor households;
- provide broad estimates of the financial cost to the Assembly Government and other parts of the public sector in Wales;
- provide broad estimates of the financial cost to sub-contractors in the private or voluntary sectors and other employers who may be affected by a Living Wage policy, and an assessment of their likely response;
- assess the impact of a Living Wage policy that applies to Wales but not other parts of the UK on the attractiveness of Wales as a business location; and
- review the potential wider labour market impacts, including the likely effects on labour market supply and demand.
The first stage of this study focused on evaluations of Living Wage policies implemented elsewhere and the likely effects of a Living Wage policy in Wales.
The report to the Welsh Government can be viewed here.