Living Wages Introduction Over the past decade, politicians have sought to reform national poverty levels by lobbying for what is often called a living wage. The living wage, at the most basic level, is the absolute minimum a person must earn annually or hourly to stay above the federal poverty level. Although the number of people receiving a living wage is still small, Wood (2002) suggests that this trend is gaining momentum in the United States because it could help reduce employee turnover and increase worker productivity. Living wages became a hot topic in In 1994, officials in Baltimore, Maryland adopted a policy requiring all businesses that received public funds or worked on government contracts to pay a wage sufficient to meet people's basic needs that they employed. The living wage differs between cities as it is calculated based on the cost of living in that area. The cost of living is based on available costs for childcare, healthcare, housing, food and transportation. According to www.responsiblewealth.org (2005), the minimum wage in 2000 was $17,050 per year for a family of four, or $8.20 per hour for a full-time worker. Most studies show that the economic benefits of living wages, such as worker productivity and reduced turnover, are increasing, and I have to agree with Neumark (2003) who explains that living wages overall can reduce poverty, and that living wage laws are effective, but there is an obvious trade-off that occurs with wage increases, particularly with reduced employment for individuals with little or no skills. Issues such as these will be discussed in more detail in this document. Poverty Reductions Neumark (200...... middle of paper ......g Wage Effects: New and Improved Evidence," Economic Development Quarterly 19, no. 1 (2005). http://www.sagepub .com.---, “Detecting Effects of Living Wage Laws,” Economic Development Quarterly 42, n.4, (2003), Steven “How the “Living Wage” Sneaks Socialism into Cities,” City Journal13, n. 1 (2003) http://www.city-journal.orgResponsible Wealth, “Living Wage: Frequently Asked Questions about he LivingWage,” http://www.responsiblewealth.org/living_wage/quanda.htmlStephens, Tom, “Living Up to the Living Wage,” The National Lawyers Guild, MichiganHouse of Representative Committee Hearing, February 2003.http://www.sugarlaw.org/pubs/2003_Testimony_Living_Wage_Mich.pdfWood, Daniel. “‘Living Wage’ Laws Gain Momentum in throughout the United States,” The ChristianScience Monitor March 15, 2002