Tag Archives: August 2004

The Hidden Cost of Wal-Mart Jobs in public safety net use by low-paid employees

Interesting study from California whose results probably also apply to Georgia, showing that Wal-Mart pays about a third less than other retail companies, so little that Wal-Mart employees tend to use food stamps and public medical assistance and housing to stay afloat, which thus “creates a hidden cost to the state’s taxpayers.”

Arindrajit Dube and Ken Jacobs wrote for UC Berkeley Labor Center, August 2004, Hidden Cost of Wal-Mart Jobs: Use of Safety Net Programs by Wal-Mart Workers in California. According to the UC Berkeley Labor Center:

This widely publicized report finds Wal-Mart’s wage and health benefits packages for its California workers to be below average as compared to the overall retail sector in California. The authors also find a greater reliance upon public assistance programs among Wal-Mart workers as compared to other California retail workers. Finally, the authors estimate the additional costs to taxpayers of “Wal-Martization”—the adoption of Wal-Mart’s wage and health benefits standards by retailers throughout California.
Here is an extract from the study: Continue reading