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The Impact of Living Wage Laws on Urban Economic Development Patterns and the Local Business Climate

The California city-level study finds no significant effect on aggregate employment or establishment growth and no negative business-climate signal. Its aggregate measures do not resolve whether particular covered workers, employers, hours, or occupations experienced different effects.

Reviewed July 24, 2026

T. William Lester, UC Berkeley Institute for Research on Labor and Employment Working Paper (Sept. 10, 2009), later published in Economic Development Quarterly 25(3), 237-254 (2011).

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The California city-level study finds no significant effect on aggregate employment or establishment growth and no negative business-climate signal. Its aggregate measures do not resolve whether particular covered workers, employers, hours, or occupations experienced different effects.

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Topic reviews: Economic Prosperity & Anti-Poverty Solutions

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July 24, 2026