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Validity of Living Wages from a Policy Instruments Viewpoint : Focusing on Systems Thinking
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 Title & Authors
Validity of Living Wages from a Policy Instruments Viewpoint : Focusing on Systems Thinking
Choi, Ho-Taek; Jung, Seok-Hwan;
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This study analyzed the spatial interrelation between living wages and economic variables and how they operate based on systems thinking theory to understand what value living wages have as policy instruments and why they are necessary. Results from this study can be summed as follows. First, the relationship between living wages and economic variables shows close interaction at a considerable level. In particular, mutual feedback which connects to laborers` standards of living, consumption, business, and economy was operating closely. Second, largely three positive (+) feedback loops were operating in the feedback structure of living wages and economic variables. This can be interpreted to mean that positive economic variables which are associated with living wages have the possibility of growth. Also, it can mean that the minimum wage system did not fully fulfill its role. Through these study results, it can be learned that living wages have sufficient value as a policy means and that it is advisable to allow living wages to exceed simple application levels in the public sector to expand into the private sector, to bring positive change to the economic system.
Living Wages;Policy Instrument;System Thinking;
 Cited by
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