In Support of a 'Living Wage': Research on International and Danish Trends and Issues of 'Working Poor'.

Abstract

In May 2012, a campaign started in support of a New Zealand ‘living wage’. This happened in light of many New Zealand workers receiving wages at or just above the statutory minimum wage and that several fast-growing sectors continue to establish many low paid jobs. While the paper’s starting point is the New Zealand ‘living wage’ debate, the issues discussed have been part of international debates about the existence and consequences of low paid work. These debates have highlighted that some countries have been better at containing low paid work. On this background, this paper focuses on the trends and issues surrounding ‘working poor’ in Denmark. As detailed, the Danish labour market has succeeded in having a relatively low level of ‘working poor’. This has even happened in several service sector industries renowned for their propensity to create low paying jobs. However, the paper also questions the stability of the so-called Danish Model based on an open labour market with large in- and outflows of migrants and with a reliance on collective bargaining/agreements, with limit state regulation and, in particular, no statutory minimum wage.