Edinburgh Napier University

  The Glasgow Living Wage (GLW) was introduced in 2009 and is currently £7.65 an hour. Across Glasgow, 130 employers have committed to paying their employees no less than the GLW. By ensuring that employees receive a salary that provides a socially acceptable standard of living, Glasgow City Council is seeking to improve the lives of thousands of the city’s most vulnerable and poorest inhabitants.
The purpose of this presentation is to consider the impact of adopting a living wage (LW) in Glasgow. A LW is perceived by some to be a social and economic good. Benefits of paying a LW include: increased employee pay, possible reduction in household poverty; enhanced employee morale; improved engagement and commitment of staff.
The literature on the topic of the LW is substantial and mixed as to whether a LW is good for economic development and society. Overall the balance of the literature is that a LW does not have significant negative effects on businesses and improves employee well-being. However, there is evidence that the LW can result in decreased levels of employment, especially amongst the young and low skilled.