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Measuring the Effectiveness of Living Wage Policy Implementation

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How Poor Is Poor Enough? Measuring the Effectiveness of Living Wage Policy Implementation by Sonja Marie Luck B.A. Honours (Political Science), Mount Allison University, 2013 Project Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Public Policy in the School of Public Policy Faculty of Arts and Social Sciences © Sonja Marie Luck 2016 SIMON FRASER UNIVERSITY Spring 2016 Approval Name: Sonja Luck Degree: Master of Public Policy Title of Capstone: How Poor Is Poor Enough? Measuring the Effectiveness of Living Wage Policy Implementation Examining Committee: Chair: Nancy Olewiler Professor, School of Public Policy, SFU Maureen Maloney Senior Supervisor Professor Joshua Gordon Supervisor Assistant Professor Doug McArthur Internal Examiner Professor Date Defended/Approved: March 21, 2016 ii Ethics Statement iii Abstract The following capstone addresses the policy problem of income inequality and poverty. This is achieved by measuring the implementation effectiveness of one identified policy tool used at the local level to combat this societal problem: living wage policy. The methodological design of this study includes: a literature review of living wage research in Canada, the United States and the United Kingdom; a case study analysis of Vancity and the City of New Westminster; and policy options based on data analysis and literature review findings. Three policy options, or strategies, were proposed, outlining the level of implementation effectiveness available to organizations considering implementing living wage policy. This study recommends a tiered-implementation approach, consisting of an initial moderate implementation framework followed by a comprehensive implementation strategy. The study findings are of value to local organizations seeking an implementation assessment template for instituting living wage policy. Keywords: Living wage; income inequality; poverty; policy; implementation iv Dedication This capstone is dedicated to the countless number of people around the world who continue to stand up and confront the negative implications of income inequality and poverty despite facing adversity and falling victim to deaf ears. This capstone is also dedicated to my mom, Roxanne, for inspiring me and posing the question: how poor is poor enough? v Acknowledgements First, I would like to sincerely thank Vancity and the City of New Westminster for agreeing to participate in my capstone. Their genuine support during my inaugural research project was deeply appreciated. In particular, I would like to thank Catherine Ludgate, Manager of Community Investment at Vancity, for going above and beyond in helping me throughout the entirety of my research and showing me Vancity’s true commitment to community and the living wage. I would also like to thank Joan Burgess, Director of Human Resources at the City of New Westminster, for her continued assistance and encouragement during my project. I am grateful for the support Simon Fraser University’s School of Public Policy faculty and staff have given me over the course of my master’s degree. To my supervisor, Maureen Maloney, thank you for your guidance and sense of humour during these many long months. A good capstone is a finished capstone. To my cohort, thank you for always providing a supportive shoulder to cry on, good conversation and welcomed laughter. Lastly, thank you to my very best friend, Richard, for always being there. vi Table of Contents Approval ............................................................................................................................. ii Ethics Statement ............................................................................................................... iii Abstract ............................................................................................................................. iv Dedication .......................................................................................................................... v Acknowledgements ........................................................................................................... vi Table of Contents ............................................................................................................. vii List of Tables ...................................................................................................................... x List of Figures ................................................................................................................... xi Glossary ........................................................................................................................... xii Executive Summary ........................................................................................................ xiii Chapter 1. Introduction ............................................................................................... 1 1.1. Setting the Stage for Living Wage: Income Inequality and Poverty ......................... 1 1.2. Policy Problem ......................................................................................................... 2 1.3. The Difference Between Minimum Wage and Living Wage ..................................... 3 Chapter 2. Cross-Jurisdictional Comparison of Living Wage Policy: Canada, the United States, and the United Kingdom ............................ 6 2.1. Living Wage in Canada ............................................................................................ 6 2.1.1. Living Wage and Vancity ............................................................................. 8 2.1.2. Living Wage and the City of New Westminster ......................................... 11 2.2. Living Wage in the United States ........................................................................... 14 2.3. Living Wage in the United Kingdom ....................................................................... 16 Chapter 3. Methodology ............................................................................................ 19 3.1. Design .................................................................................................................... 20 3.1.1. Semi-Structured Interviews ....................................................................... 20 3.1.2. Data Collection .......................................................................................... 21 3.1.3. Data Analysis ............................................................................................ 23 Chapter 4. Vancity and the City of New Westminster: An Analysis of Living Wage Policy Implementation ..................................................... 24 4.1. Vancity’s Living Wage Implementation Experience ............................................... 24 4.1.1. Linking a Triple-Bottom-Line to Living Wage Implementation Success .................................................................................................... 24 4.1.2. The Complexity of Implementation: Benefits, Challenges and a Targeted Strategy ..................................................................................... 26 4.1.3. Pride and Advocacy Work: The Spillover Effects of the Living Wage ....... 28 4.1.4. Living Wage Enforcement and Future Considerations .............................. 30 4.2. The City of New Westminster’s Living Wage Implementation Experience ............ 31 4.2.1. An Informal Implementation Process: Limiting Administrative Complexity ................................................................................................ 31 vii 4.2.2. Identified Areas for Improvement: Suggestions for Future Living Wage Municipalities .................................................................................. 33 4.3. Summary of Findings ............................................................................................. 35 Chapter 5. Criteria and Measures for Evaluating the Effectiveness of Living Wage Implementation ................................................................. 36 5.1. Effectiveness .......................................................................................................... 38 5.2. Equity and Fairness ............................................................................................... 38 5.3. Public Acceptance ................................................................................................. 39 5.4. Administrative Complexity ...................................................................................... 40 5.5. Affordability ............................................................................................................ 41 Chapter 6. Policy Options ......................................................................................... 42 6.1. Narrow Implementation Strategy ........................................................................... 43 6.2. Moderate Implementation Strategy ........................................................................ 43 6.3. Comprehensive Implementation Strategy .............................................................. 44 6.4. Weighting and Ranking .......................................................................................... 44 Chapter 7. Assessment of Policy Options ............................................................... 45 7.1. Policy Option 1 – Narrow Implementation Strategy ............................................... 45 7.1.1. Effectiveness ............................................................................................
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