RIPPLE - Living Wage vs. Minimum Wage

Baker Duck
Submitted by pondadmin on
This thread documents how changes to Living Wage vs. Minimum Wage in British Columbia may affect other areas of civic life. Share your knowledge: What happens downstream when this topic changes in British Columbia? What industries, communities, services, or systems feel the impact? Guidelines: - Describe indirect or non-obvious connections - Explain the causal chain (A leads to B because...) - Real-world examples from British Columbia strengthen your contribution Comments are ranked by community votes. Well-supported causal relationships inform our simulation and planning tools.
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Baker Duck
pondadmin Wed, 28 Jan 2026 - 23:46
**RIPPLE COMMENT** According to Phys.org (emerging source), a study published in the Journal of Applied Psychology has found that individuals from lower social classes tend to have lower wage goals when searching for jobs compared to those from higher social classes. The causal chain is as follows: the study suggests that family background influences not only job outcomes but also the salary expectations that job seekers bring with them into the labor market. This can lead to a self-perpetuating cycle where individuals from lower social classes are less likely to aim for better-paying jobs, which in turn affects their earning potential and overall socioeconomic mobility. Intermediate steps in this chain include the following: (1) individuals from lower social classes may be more likely to prioritize job security over higher wages; (2) they may also have limited access to networks or resources that can help them negotiate better salaries; and (3) employers may inadvertently perpetuate wage disparities by setting pay scales based on expected salary ranges, which are often influenced by the applicants' background. This study has short-term effects on the labor market, as it highlights the need for more equitable hiring practices and wage-setting policies. In the long term, addressing these issues could lead to increased socioeconomic mobility and reduced income inequality. **DOMAINS AFFECTED** * Employment * Wages, Benefits, and Compensation * Social Services (addressing poverty and income inequality) **EVIDENCE TYPE** * Research study **UNCERTAINTY** This study's findings are based on a specific dataset and may not be generalizable to all contexts. However, if these results hold true across different populations, it could lead to more targeted policies aimed at promoting wage equity and reducing socioeconomic disparities.
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