Adam Smith is widely regarded as the father of political economics, and as one who provided the philosophical underpinnings of much of neoclassical economics. Since the mid-1970s there has been renewed interest in, and reinterpretation of, Smith’s work. This paper looks at two aspects of this reinterpretation, the first of which is Smith’s writing on wages. Smith was an advocate of high wages, a view that strongly contrasted with the received wisdom of the day. He considered that a wage which provided for a reasonable standard of living was essential for the development of an economy. The second aspect encompasses Smith’s notion of the subsistence wage which traces its historic lineage to the Greek philosophers. The paper concludes that Smith, the champion of ‘liberty’ and non-government interference in markets, would probably have supported the notion of minimum wages, such as are now mandated in the United Kingdom, the United States and Australia. Nevertheless, the mandating of minimum wages is a necessary but not a sufficient condition for the achievement of living wage outcomes.

Wages – the monetary payments that workers receive from employers in exchange for their labour – are widely overlooked in academic and policy debates about human rights and business in global supply chains. They shouldn’t be. Just as living wages can insulate workers from human rights abuse and labour exploitation, wages that hover around or below the poverty line, compounded by illegal practices like wage theft and delayed payment, leave workers vulnerable to severe labour exploitation and human rights abuse. This article draws on data from a study of global tea and cocoa supply chains to explore the impact of wages on one of the most severe human rights abuses experienced in global supply chains, forced labour. Demonstrating that low-wage workers experience high vulnerability to forced labour in global supply chains, it argues that the role of wages in shaping or protecting workers from exploitation needs to be taken far more seriously by scholars and policymakers. When wages are ignored, so too is a crucial tool to protect human rights and heighten business accountability in global supply chains.

Theoretically, a living wage is a threshold that, once crossed, may transform qualities of work life, including from wage injustice to justice, organizational disengagement to commitment, and life dissatisfaction to satisfaction. Initial studies from New Zealand, South Africa and Thailand have found a threshold-like cusp in the relationship between wages and quality-of-work-life. Our aim in this study was to explore whether we would replicate a cusp in a localized study within China, among 135 employees in Shandong Province, Northern China. Survey data used minimal assumption and exploratory techniques to probe links between levels of employees’ (1) take-home wage and (2) net household income; and (3) perceived wage justice, (4) commitment to employing organization, and (5) life satisfaction. Measures were locally aligned and statistically reliable. Consistent with living wage theory, as a participant’s wage tended to cross a pay threshold of (1) RMB 4–5000 personally per month and (2) RMB 7–8000 household monthly, workers tended to report (3) wage justice (in place of injustice), (4) presence (replacing absence) of organizational commitment, and (5) satisfaction with life (replacing dissatisfaction). Our replication aim was met, but generalizing to any kind of national living wage across China would require a larger and more representative study and sample.

This article reports the results of a case study on the introduction of the living wage. Three employers in the City of York became living wage employers. Using data derived from a sample survey of their employees and qualitative interviews, this article explores what impact the receipt of the living wage had on poverty and deprivation. It found that not all living wage employees were income poor or deprived, although those on living wage rates were more likely to be poor and deprived than those on even higher wages. The more important determinant of the employees’ living standards was the household they lived in, and there were a high proportion of living wage employees living in multi-unit households. Also important were the number of earners in the household and the hours worked by the living wage employee. Lone parent families and single people appeared to be most vulnerable to poverty and deprivation. In addition, whether the employee took up their entitlement to in-work benefits was critical and, using benefit checks by welfare rights experts, it was found that some were not.

This article examines the theoretical underpinning of living wage campaigns. The article uses evidence, derived from the UK Quarterly Labour Force Survey from 2005 to 2008, to examine the extent to which a living wage will address low pay within the labour force. We highlight the greater incidence of low pay within the private sector and then focus upon the public sector where the living wage demand has had most impact. The article builds upon the results from the Quarterly Labour Force Survey with analysis of the British Household Panel Survey in 2007 in order to examine the impact that the introduction of a living wage, within the public sector, would have in reducing household inequality.