Charles Waldegrave has slammed Brian Scott’s critique of the method used to calculate the Living Wage in New Zealand.
In a detailed and interesting analysis, he addresses the databases used to develop the Living Wage and compares the New Zealand approach with that of other countries. He shows Scott’s critique, and that of the Treasury, lack an informed understanding of the definition of a living wage and confuse market wage rates and welfare transfers.
He also demonstrates how Scott selectively applies international comparative data and consistently misapplies the use of Statistics New Zealand’s Household Economic Survey database. Further, he states Scott provides no evidence for his assertions about the negative impacts of the living wage on workplace morale and productivity.
Waldegrave cites the evidence of the balance of studies that have shown positive business and economic outcomes from living wage policies internationally.
*The living wage level was set at $18.40 per hour in February 2013. Scott’s paper has been given prominence on David Farrar’s Kiwiblog 3 January 2014