The Living Wage: An Economic Geography Based Explanation for a Policy for Equality

Abstract

This article examines the theoretical underpinning of living wage campaigns. The article uses evidence, derived from the UK Quarterly Labour Force Survey from 2005 to 2008, to examine the extent to which a living wage will address low pay within the labour force. We highlight the greater incidence of low pay within the private sector and then focus upon the public sector where the living wage demand has had most impact. The article builds upon the results from the Quarterly Labour Force Survey with analysis of the British Household Panel Survey in 2007 in order to examine the impact that the introduction of a living wage, within the public sector, would have in reducing household inequality.