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Richard Anker and Martha Anker

Chapter 7 describes how to estimate essential needs for decency besides food and housing. Since it would not be practical to list, agree on, and price all essential non-food non-housing (NFNH) needs, the Anker methodology uses secondary data from a recent household expenditure survey to help estimate essential needs. The ratio of NFNH costs to food costs from a recent household survey is multiplied by the cost of the living wage model diet. This chapter discusses the considerable variability in how countries measure and classify food, housing and NFNH costs in surveys and statistics, and how to adjust for this variability so that the NFNH to food ratio used to estimate NFNH needs is consistent with the Anker methodology. A list of what is included in each expenditure group in CIOCOP (Classification of Individual Consumption According to Purpose) is included in an Annex.

Open access

Richard Anker and Martha Anker

Food is almost always the most important expense of households in developing countries. In the Anker methodology, the cost of food is based on local food prices and a model diet that is nutritious in more than just calories, is consistent with local food preferences, and is relatively low in cost for a nutritious diet. Chapter 3 describes in detail the nutritional needs of people and the nutritional content of major food groups such as cereals, legumes, dairy, vegetables, fruits, and oils. Two Excel programs are described that were developed by the authors to help researchers to create an appropriate model diet for estimating food costs for a living wage. The first Excel program calculates the required number of calories per person (based on age, sex, body size, and level of physical activity). The second Excel program helps researchers create a model diet that meets multiple WHO nutritional requirements, is palatable to the local population, and is relatively low in cost for a nutritious diet. Chapter 3 explains why these new Excel programs were needed, describes the logic behind them, and takes the reader through each step of creating an appropriate model diet for a living wage. The nutritional content and percentage edible of many common foods are provided in an annex.

Open access

Richard Anker and Martha Anker

Open access

Richard Anker and Martha Anker

Open access

Richard Anker and Martha Anker

Chapter 6 is concerned with estimating the cost of acceptable housing. It describes how to do a local housing market survey to obtain the cost of rent (and utilities) for decent housing that meets the local housing standard discussed in Chapter 5. It includes tips on how to conduct an efficient local housing market survey, and provides an example of a housing survey questionnaire form. The chapter discusses how to analyze and present the results of a local housing market survey. Chapter 6 also discusses how to estimate housing costs when the rental market for decent housing is not well developed, and so there are very few rental units available that meet the local housing standard for decency.

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Living Wages Around the World

Manual for Measurement

Richard Anker and Martha Anker

This manual describes a new methodology to measure a decent but basic standard of living in different countries and how much workers need to earn to afford this, making it possible for researchers to estimate comparable living wages around the world and determine gaps between living wages and prevailing wages, even in countries with limited secondary data.
Open access

Richard Anker and Martha Anker

It is important to put living wage estimates into context by comparing them with other wage and economic indicators as well as indicating recent trends in real wages. Chapter 17 describes two recommended approaches to providing a contextual backdrop for a living wage estimate. One approach illustrates in a wage ladder figure the size of gaps between prevailing wages in an industry or establishment and a living wage and other wage indicators such as poverty line wages, and average wages. Recommendations for reference points to use in a wage ladder are provided, along with examples of wage ladders from previous living wage studies. The second recommended approach is to use a series of graphs to display how real wages have changed over time in local currency and in US dollars as well as compared with other economic indicators such as minimum wages and labor productivity. Examples of such graphs from previous living wage studies are provided.

Open access

Richard Anker and Martha Anker

Open access

Richard Anker and Martha Anker