Living Wage Ordinances

Since 1994, 130 municipalities have adopted living wage ordinances, which mandate that covered workers receive an hourly wage providing enough income to keep the individual above the poverty line. This study identifies what factors have lead to the proliferation of living wage laws across the United States while also determining what characteristics have prompted some municipalities to pass living wage ordinances while others have not. This research also considers the impact of living wages on municipalities that have adopted such laws. To further elucidate the issues associated with living wage ordinances, two cities—Baltimore and Los Angeles—are examined as case studies. Ultimately, this study concludes that municipalities that have adopted living wage laws share several characteristics and that living wage ordinances have provided significant benefits at relatively small costs

The Impact of Foreign Aid on Development and Aggregate Welfare in Developing Countries

Over one billion people across the globe live in extreme poverty, struggling to survive on less than one U.S. dollar per day. The persistently low levels of aggregate welfare and human development in developing countries have recently caught the attention of many politicians and social observers. As the developed nations and multinational organizations of the world are called upon to increase development assistance to these impoverished countries, a question must be asked: Will increased foreign aid effectively raise human development in developing countries? While many studies have analyzed the impact of development aid on economic growth in developing nations, few have addressed the impact of development aid on more comprehensive areas of development. Analyzing data on 87 developing countries from 1980 to 2000, this study employs two-stage least squares estimation to evaluate the impact of foreign aid on the Human Development Index (HDI), a composite index of development and aggregate welfare, while controlling for the level of pro-poor public expenditure within a developing country. In addition, an interaction term between foreign aid and a measure of macroeconomic policies is utilized to determine if economic policy has an impact on the effectiveness of development assistance. This study finds that greater foreign aid is associated with lower levels of HDI after controlling for GDP and pro-poor public expenditure. In addition, the study concludes that macroeconomic policies do not influence the level of HDI in developing countries