Living Wage

Living Wage
A theoretical wage level that allows the earner to afford adequate shelter, food and the other necessities of life. The living wage should be substantial enough to ensure that no more than 30% of it needs to be spent on housing. The goal of the living wage is to allow employees to earn enough income for a satisfactory standard of living.

There are supporters and critics of the idea of a living wage and its effects on the economy. The critics argue that implementing a living wage establishes a wage floor, which will harm the economy. They believe that companies will choose not to hire the same number of employees at such high levels of pay. This creates higher unemployment, resulting in deadweight loss, as people who would work for less than a living wage are no longer offered employment.

Supporters of the living wage, on the other hand, argue that benefiting employees will also help the company. If employees are more satisfied earning a living wage, there will be less employment turnover. This reduces expensive recruitment and training costs for the firm. They also argue that the higher wage will boost morale. Employees with high morale are expected to have higher productivity, allowing the company to benefit from increased worker output.


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  • Living wage — is a term used to describe the minimum hourly wage necessary for a person to achieve some specific standard of living. In developed countries such as the United Kingdom or Switzerland, this standard generally means that a person working forty… …   Wikipedia

  • living wage — ➔ wage * * * living wage UK US noun [S] ► money you earn from your job that is enough to pay for the things you need to live, such as food and a home: »Many people are forced to take on two jobs to earn a living wage. »Leading firms have been… …   Financial and business terms

  • living-wage — UK US noun [S] ► money you earn from your job that is enough to pay for the things you need to live, such as food and a home: »Many people are forced to take on two jobs to earn a living wage. »Leading firms have been criticized for failing to… …   Financial and business terms

  • living wage — n. A wage sufficient to meet ordinary living expenses. See also minimum wage The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 …   Law dictionary

  • living wage — n [singular] a salary that is high enough to allow you to buy the things that you need to live ▪ jobs that don t even pay a living wage …   Dictionary of contemporary English

  • living wage — ► NOUN ▪ a wage which is high enough to maintain a normal standard of living …   English terms dictionary

  • living wage — n. a wage sufficient for living in reasonable comfort …   English World dictionary

  • living wage — liv ing wage A wage or salary that permits a worker to live at least with minimal customary amenities, and above conditions of poverty. [PJC] …   The Collaborative International Dictionary of English

  • living wage — noun singular an income that is enough for you to buy the basic things you need, such as food or clothing …   Usage of the words and phrases in modern English

  • living wage — noun a wage sufficient for a worker and family to subsist comfortably • Hypernyms: ↑wage, ↑pay, ↑earnings, ↑remuneration, ↑salary * * * noun [singular] : an amount of money you are paid for a job that is large enough to provide you with the basic …   Useful english dictionary

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