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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.
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Index

Richard Anker and Martha Anker

acceptable housing standards 12930
acceptable in kind benefits 296
access to safe water 115, 131, 143, 145
additional funds
to assist parents and relatives 29, 2389
see also margin for unforeseen events
adults
calorie requirements 378
replacement costs of home-prepared meals 42
Afghanistan 290, 291
Africa
bargaining in food purchasing 100
in kind benefits 285, 287, 291, 300
living space 122
malnutrition 43
see also individual countries; North(ern) Africa; Sub-Saharan Africa
age, labor force participation rates 249, 250
agricultural commodity industries, study locations 26
air pollution (indoor) 147
alcohol 94, 17071, 180, 186
allowances see cash allowances
Americas
in kind benefits 285, 288
see also Caribbean; individual countries; Latin America; United States
amino acids 43
Angola 287, 290, 291
animal-based foods 60
Anker methodology 3
acceptance and experience in using 67
description 1827
improvement on common methodologies 4
key principles 56
modest cost 6
normative basis 5, 17, 21, 23
practicality 6, 1718
tools 15
transparency 4, 5, 17, 22, 23, 270
uses of manual 1415
see also decent standard of living; living wage estimation; living wage reports; prevailing wages
Anker review of living wage methodologies (2011) 2, 4, 8, 190, 229, 247
Arab states 285, 287
architects, construction cost data 166
Argentina 288, 300
Asia
average household size 237
family size 238
in kind benefits 285, 2889, 300
living space 122, 127
living wage estimates 22930
minimum to average wage ratio 16
see also East Asia; individual countries; South Asia; Southeast Asia
Asian Floor Wages 16, 312
auditing, valuing in kind benefits for 301
Australia 121
average attained height 37, 41
average household size 232, 2345, 237, 23940, 241
Bangladesh 7, 16, 27, 51, 57, 88, 149, 179, 2567, 273, 282
bargaining, in food price collection 100
basic bodily functions (adults), calorie requirements 37
basic metabolic rate (BMR) 37, 38
basic wage 272, 3334
beans see legumes/beans/pulses
benefits 271
see also cash allowances; fringe benefits; in kind benefits
bonuses 20, 25, 270, 271, 2723, 274, 276, 277, 302, 304, 309, 315, 3334, 337
Botswana 287, 290, 291
Bray, M. 219
Brazil 7, 125, 126, 161, 264, 288
bread 36, 47, 51, 52, 60, 63, 66, 70, 74, 79, 94
building companies, construction cost data 166
Bunley, S. 219
Burkina Faso 290, 291
calcium 45, 73, 89
calories
derived from dairy products 45, 567
in a model diet 21, 34, 35, 73
percentage from carbohydrates 35
percentage from fats 35, 47
percentage from proteins 35, 36, 42, 43, 60, 62
primary and secondary data 28
requirements 35, 3742
adults 3738
children and adolescents 39
Excel program for calculating calorie requirements 41-42
family 39
lactation 40
pregnancy 40
Cambodia 44, 176, 185, 219, 288, 290, 291, 300
Cameron, D. 1
Cameroon 286, 290, 291
Canada 121, 288, 290, 291, 300
Cape Winelands see South Africa
capital appreciation, owner occupied housing 165
carbohydrates 35, 60
see also calories; model diet
Caribbean
calories derived from dairy products 45
housing 168
labor force participation rates 250
living space 122, 127
poverty lines 310
unemployment rates 253
World Bank poverty line wage 310, 321
see also Dominican Republic
cash allowances in wages 271, 2734, 2756, 2778, 299, 3334
CDC 43
Center for Social Concern (CfSC) Malawi 109, 110, 312
Central and Eastern Europe 122, 127, 250, 253, 310
cereals and grains
local food price surveys 90, 91, 95, 100
in a model diet 47, 51, 52, 63, 66, 70, 74
nutritional content and percent inedible 78
venues for purchasing 93, 94
see also prepared cereals
certifying organizations
commitment to living wage 13
housing standards 11819
living wage in codes of practice 1
see also standard setting organizations
Chad 287, 290, 291
Chengdu 256, 318
child labor 251
child mortality 236, 240
children
assumption of school attendance 215
calorie requirements 39
education of see education post check; education right to
number of children in reference family see reference family size
of migrant workers 232
school lunches and reduced cost of meals prepared at home 42
Chile 45, 288, 300
China
Anker methodology in 7
family size, in living wage studies 234
food wastage 56
information on food prices 100
in kind benefits 282, 300
living space 120, 123, 124, 126
meals eaten away from home 185
model diet 57, 90
number of workers per family 2534, 257
rental cost surveys 161
seasonality of food prices 108
see also Chengdu; Shanghai; Shenzhen; Zhengzhou
CIA Factsheets 132
codes of practice 1, 13, 11819, 269
coffee 48, 54, 84, 92, 93, 94, 95
COICOP (Classification of Individual Consumption According to Purpose) 16970, 1923, 217, 218, 228
collective bargaining agreement (CBA) 30, 269, 279, 2846, 297, 299, 311, 326
Colombia 288, 291, 292
Committee of Experts (ILO) 283
Committee of Statistical Experts Resolution 1935 (ILO) 119
Comoros 290, 291
conclusions, in living wage reports 335
condiments 51, 54, 65, 75, 77
construction costs, new housing 1656
construction materials, for local housing standards 136
consumer price index (CPI) 48, 86, 97, 1624, 167, 339, 340, 341
context(s), in living wage reports 326
corporate social responsibility 13
cost(s)
of a model diet 17, 35, 46
see also education cost post check; health care cost post check; local cost of decent housing; non-food and non-housing costs
cost of living adjustment 272
Costa Rica 185, 288
covered floor space 122, 123
see also floor space; living space
credible living wage estimates
as an objective of the Anker methodology 11
developing countries 5
methodology for 3, 4
MNCs and need for 1213
uses for 1415
cultural norms 231, 238, 250
Czech Republic 291, 292, 300
dairy
in a model diet 35, 456, 52, 63, 66, 70, 74, 88
nutritional content 83
selecting for price collection 92
venues for purchasing 93, 94
see also milk
data cleaning of food prices 102
data collection and analysis
Anker methodology 6, 256
primary data needed 2830
secondary data needed 2830
see also local food prices; local housing conditions; rental cost surveys; utility costs
day of week, food price collection 98
decent standard of living 8, 13, 18, 19, 21, 197, 233, 272, 295, 333, 335
diet see model diet for a living wage
estimating 11, 18
costs see food costs; housing costs; non-food and non-housing costs
decent wages 13
Decent Work for All 15
deferred payments 270, 271
Demographic and Health Survey (DHS) 41, 132, 140, 207, 211, 216, 223, 237, 239, 240, 241
developed countries
guidelines on milk and dairy consumption 45
labor force participation rates 250
living wage methodologies 45
unemployment rates 253
see also individual countries
developing countries
guidelines on milk and dairy consumption 45
housing in rural areas 165
living wage
estimations, selecting study locations 267
methodologies 4, 5, 15
see also Dominican Republic; Kenya; Malawi; South Africa low food wastage 56
migrant workers 2323
NFNH to food ratio 179
overcrowding 121
unemployment rates 252
see also individual countries
Dhaka 27, 149
Diet see model diet for a living wage
disease, protections against 1457
disposable income 8, 24, 2636, 273, 274, 333
see also take home pay; net living wage
Domestic Workers Convention 189 (ILO) 293
Dominican Republic (living wage study)
child mortality 240
comparison of wage changes and labor productivity 319, 320
expenditure statistics 217
housing conditions 1378
in kind benefits 288
misery wage 312
model diet 36, 39, 88, 89
NFNH cost estimation 176, 185, 186
number of workers per family 256, 257
purchase of bottled drinking water 163
reference family size 241
total fertility rate 240
unemployment rate 253
updating living wage estimates for inflation 340
drinking water 143, 163, 286
durable housing 143
Dutch government viii
East Asia 45, 169, 171, 215, 250, 253
Eastern Europe see Central and Eastern Europe
economic development
fall in food share 1734
living space 120, 125
model diets 36
proteins in diet 42
unsafe solid waste disposal 145
updating a living wage for 341
economic indicators, comparison of wage trends to 319, 320
Ecuador 1, 7, 288, 291
educated youth unemployment 252
education, right to 23, 214
education cost post check 23, 172, 187
approach 198, 21423
background and conceptual framework 214
examples 2237
in household expenditure statistics 21718
in living wage reports 21516, 331
items included in estimating 21819
Kenya 226, 227
Malawi 2234
primary data 29
eggs
in a model diet 46, 52, 62, 64, 66, 70, 74
nutritional content and percent inedible 81
selecting for price collection 89, 92
venues for purchasing 93, 94
El Salvador 45
electronic factories 27, 149
employer contributions, exclusion in wage/living wage comparison 272, 274
employers
construction cost data 166
interest in living wage 1
and in kind benefits 2823, 292, 2978
Engel’s law 173
environment, in housing standards 132
Ergon Associates 2989
Ethical Tea Partnership (ETP) 2, 7
Ethical Trading Initiative (ETI) 2
Ethiopia 7, 264
EUFIC review (2012) 76
Europe
definition of overcrowding 121
housing conditions 75100 years ago 119
in kind benefits 285, 289, 291
labor force participation rates 250
service life of a house 166
unemployment rates 253
see also Central and Eastern Europe; individual countries
EUROSTAT 122
EWS (Economically Weaker Section) housing India 124
Excel Living Wage Model Diet Program 15, 21, 34, 35, 36, 40, 412, 47, 5075
expense groups see costs and CIOCOP
extended family households 235
factories, selecting study locations 267
fair and reasonable value, in kind benefits 281, 282, 290, 291, 293, 2979
Fairtrade International vii, 1, 7, 13, 279280
family(ies)
calorie requirements 3742
definition 231
difference between household and 232
health care cost estimates 209210, 21112
living wage sufficient for migrant workers to live with 2323
see also, number of workers per family; reference family size
family size for living wage 18, 332
see also reference family size
fats see oils and fats; calories; model diet
female labor force participation rates 248, 249, 250
female migrant workers 232
fertility rates 234, 235, 236, 237, 239, 240, 242
fieldwork logistics, food price collection 969
Fiji 288, 290, 291
final model diet 59, 618, 725
fish
local food price surveys 89, 92, 95, 96
low wastage, Malawi 56
in a model diet 46, 53, 64, 66, 70, 74
nutritional content and percent inedible 823
venues for purchasing 93
floor materials 136
floor plans 120, 135
floor space 1228,
see also living space, covered space; number of persons per room
flower farms see Kenya, Ethiopia
food(s)
expenditures, low and middle income countries 33
as in kind benefit 290, 293
in NFNH classification 170
inedible parts of 55, 56, 7884
local preferences 33, 35, 49, 57, 72, 372
safe preparation and storage 146
wastage and spoilage 55, 56, 65, 75
see also individual foods; NFNH to Food ratio
Food and Agricultural Organization (FAO) 14, 21, 35, 43, 44, 45, 48, 55, 56, 76
food costs
estimating 21, 33
in living wage reports 327
and protein in diet 42
primary and secondary data 28
see also local food prices
food plans (USDA) 54, 55, 76
food price investigators 967
food prices see local food prices; relative food prices; representative prices
Forest Stewardship Council (FSC) vii, 2, 13
four persons, as reference family size 234
free school lunch and model diet food cost estimate 42
free transport and in kind benefits 282, 297, 300, 301
free workers’ lunches and in kind benefits 297, 2989
fringe benefits 272, 274, 276, 27980
fruits
local food price surveys 88, 92, 95, 108
in a model diet 21, 35, 435, 51, 534, 62, 64, 68, 70, 75
nutritional content and percent inedible 7980
typical size (in purchased grams) 85
venues for purchasing 90, 93, 94
see also starchy fruits and vegetables
full-time workers per family 247, 248
see also number of full-time equivalent workers per family
furnishing 1467
Gambia 290, 291
garment factories 27, 149, 275
gender, labor force participation rates 24950
German government viii
Global Living Wage Coalition (GLWC) 7, 8, 13, 118, 229, 256, 340
GoodWeave International vii, 2, 13
government supported housing 120, 1228
governments
food prices reported by 86
information for creating local housing standards 135
interest in
determining gap between prevailing wages and living wage 25
living wage 1
minimum wage setting and living
wage 14
use of credible living wage estimates 14
grains see cereals and grains
green leafy vegetables (GLV) 51, 53, 64, 68, 70, 73, 75, 80, 107
grocery stores 90, 94, 101, 103
gross living wage 19, 24, 263, 265, 266, 335, 336, 337, 340
Guatemala 7, 45, 288, 291, 292
Habitat for Humanity 122, 125, 135, 165, 166, 1678
hazardous housing locations 116, 117, 188, 136, 143
hazards, structural hazards in housing 116, 117, 142, 145, 146, 147
health care, right to 23
health care cost post check 23, 172, 187
approach 198, 207210
background and conceptual framework 206
example 21012
health care providers 208, 209, 211
in living wage reports 330
primary and secondary data 29
high income countries 5, 43, 44, 1278, 173, 190
high inflation countries, updating living wage 34041
holiday pay 272
holiday periods, food prices 99
home-prepared meals, replacement costs 42, 2989
Honduras 288, 291, 292
house insurance 168
household, difference between family and 232
household expenditure data
classification 23, 16972, 217, 218, 227
education costs in 21718, 21920, 224, 225
in NFNH cost estimation
adjusting to conform to Anker methodology 1826
need to adjust NFNH to Food
ratio 1946
selecting appropriate part of
income distribution 1812
household income, NFNH to Food ratio 1758,
see also NFNH to Food ratio
housing
as an in kind benefit 28690, 293, 298
right to adequate 113, 11516, 142
housing authorities, information for creating local housing standards 135
housing conditions
Europe and US 75100 years ago 119
see also local housing conditions
housing costs
estimating
advantages of Anker methodology 114
problems of common approach 11314
separate from other costs 4, 17, 114
in living wage reports 328
primary and secondary data 289
taxes and fees 29, 167
see also local cost of decent housing
housing standards
housing cost estimation based on 21
see also international housing standards; local housing standard(s)
human rights
agreement on living wage as a 2, 3, 8
to adequate housing 113, 11516, 142
to health care and education 18, 23, 169, 172, 180, 187, 197, 214, 330
United Nations Universal Declaration of Human Rights 3
ILO
Anker review of living wage methodologies (2011) 2, 4, 8, 190, 229, 247
Committee of Statistical Experts Resolution (1935) 119
Constitution Preamble (1919) 23
Domestic Workers Convention 189 293
in kind benefits
on cautious acceptance of 283
on concern about abuse of 2823
conventions and recommendations 2924
valuation method 291
labor force participation data 251
Minimum Wage Fixing Convention 131 1011
Philadelphia Declaration Annex to Constitution (1944) 3, 10, 11516
Plantations Convention 110 293, 295
Protection of Wages Convention 95 270, 2934
Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (2006) 293
use of credible living wage estimates 14
Workers’ Housing Recommendation 115 (1961) 116, 117, 144, 293
in kind benefits 281305
abuse by employers 2823
cautious acceptance of 283
defined 2812
50% rule 342
guaranteed in kind benefits 295
ILO conventions and recommendations 2924
in living wage reports 334
in wage/living wage comparisons 272, 274, 2789
maximum values 286, 2879, 293, 299300
national laws 28492
reasons for consideration of 282
restricted list of acceptable in kind benefits 2956
valuing
approaches and principles for 294301
example 3015
variety of 282
incentive payments 2712, 2723
income per capita, and food share 1735
income tax 264
India
Anker methodology in 7
food preparation for sale 556
in kind benefits 291, 292
living space 1234, 126, 141
minimum to average wage ratio 16
model diet 51, 57, 88, 90
national database for calorie requirements 40
NFNH cost classification 171
NFNH to Food ratio 177, 179
venues for food purchasing 93
indoor air pollution 147
IndustriALL 2
industry(ies)
and in kind benefits 282, 284, 295, 301
reference points to include in a wage ladder 309
selecting study locations 267
wage ladder tool 3089
wage/living wage comparisons 269
inedible parts of food 556, 7885
infant mortality 236
inflation 315, 33941
INFOODS 55, 56
Institute of Medicine of the National Academy (US) 163
international comparability, Anker methodology 6, 23
International Comparison Program (ICP) 119, 164
International Conference of Labor Statisticians (ICLS) 341, 342
international conventions, adequate housing 11618
International Covenant on Economic, Social and Cultural Rights (1966) 115, 116, 117, 142, 214
international databases, local housing conditions 132
international housing standards
for creating local housing standards 136, 138, 140
housing cost estimation 22
review of 11518
international organizations
interest in
determining gap between prevailing wages and living wage 25
living wage 1
principles for adequate housing 11618, 1427
use of credible living wage estimates 14
international poverty lines 31012
international principles, housing standards 115, 11618
International Textile, Garment and Leather Workers’ Federation 2
Ireland 121, 125, 127, 141
ISEAL Alliance vii, 13
Israel 291, 292, 300
Japan 290, 291
Kenya (living wage study)
cash allowances 275
child mortality 240
construction cost data 166
data collection 26
education cost post check (example) 21718, 2247
fertility rate 234, 240
food price survey 109
graphs
comparing prevailing wages and minimum wages 31718, 320
illustrating recent wage changes 316
illustrating wages changes
expressed in US dollars 31819
in kind benefits 282
living space 124, 126
location of study, Lake Naivasha, 26, 14950
model diet 46, 6175, 62, 88, 89
NFNH classification 171
NFNH to Food ratio 179
number of children less than age 18 per woman 2367
reference family size 23940
rental cost survey 149, 150, 159, 161
seasonality of food prices 108, 109
unemployment rate 253
updating living wage estimate for inflation 340
utility costs 162
vendor willingness to provide information on prices 100
wage ladder (example) 31214
KILM (ILO) 251, 258
Kuala Lumpur 125, 126
labor force participation rate(s)
by age 249, 250
by gender 24950
data subject to bias and error 249
definition and measurement 2489
ignoring child labor in living wage estimation 251
number of workers per family 2567
rural-urban differences 251
secondary data 259
sources of data 251
labor productivity, comparison of wage changes and 319, 320
LABORSTAT (ILO) 251, 258, 309
lactation, calories requirements 40
Lake Naivasha see Kenya
Latin America and the Caribbean
calories derived from dairy products 45
cash allowances 273
labor force participation rates 250
living space 122, 127
minimum to average wage ratio 16
poverty lines 310
unemployment rates 253
urban-rural difference in family size 237
see also individual countries
legumes/beans/pulses
local food price surveys 88, 91
in a model diet 47, 52, 60, 63, 66, 70, 73, 74
nutritional content and percent inedible 84
venues for purchasing 93, 94
less than full-time work 254
levies, owner occupied housing 167
Liberal Food Plan (USDA) 55, 76
LIG (low income group) housing in India 124, 141
linear programming optimization for a model diet 77
living income 1314
living space 11928, 1312, 143,
see also floor space; number of persons per room
living standard see standard of living
living wage(s)
commitment to by standard setting organizations 13
in context see wage ladder; wage trends
as a decent wage 1
definition, consensus on 8
definition, in living wage reports 326
distinguished from minimum wages 1011
gap between prevailing wages and see prevailing wages
GLWC commitment to 13
historical background 23
interest in, and acceptance of 13
and living income 1314
and living standard see decent standard of living
London 230
measuring
need for methodology and manual 35
see also Anker methodology
as a public awareness tool 2
studies see Dominican Republic; Kenya; Malawi; South Africa
uses of 1415
voluntary aspect of 10
living wage estimation 11, 12, 1820
in living wage reports 325, 326
MNCs need for credible estimate 1213
need for more than one estimate per country 25
number of workers per family 24
background and conceptual framework 2478
determining number of full-time
equivalent workers 24857
example 2578
principles of housing standards for 128, 12930
selecting study locations
balancing place-specific and generalizable living wage 256
for factories and industries 267
for industries producing
agricultural commodities 26
statutory deductions from pay 24
background and conceptual framework 263
calculating take home pay 2646
example 266
subjectivity/judgement in 810
updating for inflation 33941
see also credible living wage estimates
living wage reports 6, 12
inclusion of photos in 155
indication of education systems in 21516
suggested outline 32535
summary tables to include in 3368
transparency in 5, 270
living wage-specific inflation rate 342
local cost of decent housing 14868
maintenance and repair costs 163
primary and secondary data 289
rental cost surveys
carrying out 14855
data analysis and presentation 1559
rental costs
asking for workers’ perceptions of 15961
user cost of occupied housing as a
proxy for 1638
utility and other costs 1613
local food preferences, in a model diet 35
local food prices 21, 86112
adjustment for seasonality 1058
examples 109110
data analysis 1024
data collection 256
budget provision, food price collecting 100
fieldwork logistics 969
forms 96, 99, 1012, 111, 112
item selection 8890
maximum quantities to use 956
mimicking cost-conscious workers 867
other considerations 99100
quality of foods 96
reasons for 86
steps in a survey 87
supervision and monitoring 99
venues 9095, 978
see also grocery stores; speciality
shops; supermarkets
in living wage reports 328
primary and secondary data 28
selecting foods to include in a model diet 1045
local housing conditions
for creating local housing standards 136, 1378
data collection form 1335
secondary data on 132
local housing standard(s) 22, 11437
background and conceptual framework 11314
developing 12840
in living wage reports 329
primary and secondary data 28
principles and characteristics 11428, 1427
template to determine and describe 1312
location-specific
allowance of in kind benefits 284
family size 237
labor force participation rates 260
living wage estimations 56
number of workers per family 248
part-time employment 261
starting diet 57
unemployment rate 260
wages 17
London’s living wage 230
low income countries 62
food expenditures 33, 190
food share and economic development 173
food wastage 56
fruit and vegetable consumption 44
guidance on floor space 125
protein recommendations 43
low income housing 120, 1228
Low-Cost Food Plan (USDA) 76
low-cost nutrition model diet see model diet for a living wage
Luxembourg 291, 292
macronutrients 21, 33, 43, 50, 51, 58, 59
maintenance and repair costs 29, 163, 1667, 168
maize 52, 63, 66, 70, 73, 74, 90, 94, 110
Malawi (living wage study) 7
child mortality 236
construction cost data 166
data collection 26
determining user cost of owner occupied housing (example) 1678
education cost post check (example) 2234
expenditure statistics 217
graphs
comparing prevailing wages and minimum wages 317
illustrating recent wage changes 316
health care post check (example) 21012
housing conditions 13940
inflation rate 342
living space 125, 126
living wage estimates 312, 340
low food wastage 56
model diet 39, 46, 89, 90
number of workers per family 256, 257
production bonuses 273
seasonality of food prices 108, 10910
service life of a house 166
venues for food purchasing 93
wage ladder (example) 31415
Malaysia 120, 125, 126
male labor force participation rates 249, 250, 258,
see also labor force participation rate(s)
Mali 286, 287, 290, 291
malnutrition 43
margin for unforeseen events 23
approach to determine 22930
background and conceptual framework 229
data for 29
in living wage reports 332
see also additional funds
market rates, value of in kind benefits 29092
maternity leave 274
mathematical optimization approaches to model diets 50, 77
see also Excel Living Wage Model Diet Program
Mathenge, M. 109
Mauritius 89, 93, 96, 100, 108, 165, 219, 236, 300
maximum limits, in kind benefits 299300
maximum monetary amounts specified, in kind benefits 290
maximum quantities purchased, food price collection 956
maximum reference family size 238
meals see home-prepared meals
meats
local food price surveys 89, 92, 95, 96
in a model diet 46, 53, 62, 64, 66, 70, 74
nutritional content and percent inedible 82
preparation for sale 56
typical size (in purchased grams) 85
venues for purchasing 93, 94
Mexico 7, 16, 125, 126, 288, 300
micronutrients 33, 35, 40, 43, 44, 45, 50, 51, 58
Middle East 100, 234, 237, 238, 250, 253
middle income countries
food expenditures 33
food share 173
fruit and vegetable consumption 44
living space 124, 125, 126, 127
NFNH cost estimation 182
poverty lines 310
protein recommendations 43
MIG (middle income group) housing in India 124
migrant workers 2324
migration, and household size 234
milk
local food price surveys 89, 92
in a model diet 456, 52, 60, 62, 63, 66, 70, 73, 74, 88
number of calories in 567
nutritional content and percent inedible 83
typical size of cup 85
venues for purchasing 93, 94
Millennium Development Goals 14, 15, 142, 215
milling charges 90, 100
minimum acceptable housing standard 12930
minimum reference family size 238
minimum standards, for in kind benefits 28690, 293, 295
minimum wages
arbitrariness of 16
comparison of prevailing wages and 31718
Ecuador law and salario digno 1
ILO Convention on 1011
in kind benefits as partial payment of 283, 284
laws 230, 256
living wages distinguished from 1011
use of credible living wage estimates 14
Vietnam law and minimum living needs 1
in a wage ladder 309
misery wage, Dominican Republic 312
model diet for a living wage 17, 21, 3385
background 33
calories in 3742
characteristics 356
creating 4875
key features in development of 334
in living wage reports 3278
nutritional recommendations 3648
primary and secondary data 28
selecting foods to include in 1045
monetary value, in kind benefits 281, 29092, 293
Morocco 125, 126
mortgage interest payments 165
motor vehicle ownership 180, 2014, 205
Mozambique 287, 290, 291
mud walls, not acceptable 136
multi-vendor markets see open air markets; street sellers
multinational corporations (MNCs)
description of small margin for emergencies 229
living wage project, Malawi 7
need for accepted and credible living wage methodology 1213
use of Anker methodology 67
Myanmar 219
Nagpur (India) 27, 124
NAL database 55, 56
national databases, calorie requirements 40
national guidelines, milk and dairy consumption 45
National Institute of Nutrition (India) 40
National Institute of Nutrition (Vietnam) 40
national poverty lines 4, 33, 310
Near East 237
net living wage 19, 24, 2636, 308, 325, 337
see also disposable income, take home pay
Netherlands 289, 290, 291
New Zealand 289, 291, 292
NFNH to Food ratio
income and economic development 1738
and NFNH cost estimation 181, 182, 1867
rural-urban differences 17980
NGOs
interest in
determining gap between prevailing wages and living wage 25
living wage 1
living wage estimates from 31112
in living wage project, Malawi 7
use of credible living wage estimates 14
Nicaragua 7, 16, 288
Nigeria 125, 126
night work pay supplements 272
non-alcoholic beverages see coffee; soft drinks; tea
non-food and non-housing (NFNH) costs 22, 16990
defined 16970
estimating
conceptual and empirical issues 17280
four step approach 1817
hypothetical example 18790
in living wage reports 32930
primary and secondary data 29
unnecessary items for decent living standard 180
variability in measuring and classifying 17072
see also post checks of NFNH costs
normative basis, of Anker methodology 5, 17, 21, 23
North(ern) Africa 143, 250, 253
see also individual countries
number of persons per room 120, 121
number of full-time equivalent workers per family 4, 24
determining number of full-time equivalent workers per family
equations for determining 2557
labor force participation rate 24851, 257
part-time employment 254, 258
unemployment rate 2514, 258
in living wage reports 3323
more than one worker per family 247
secondary data 29
variations in 248
nursery school 221
nutritional content of foods 567, 7885
nutritionists, model diets prepared by 489
Oceania 122
OECD 213, 281
oils and fats
local food price surveys 89, 91, 95, 96
in a model diet 35, 47, 54, 60, 64, 68, 72, 75
nutritional content 83
percent calories from 35, 47
percent inedible 83
typical size 85
venues for purchasing 93, 94
Oman 45, 179
‘one full-time worker’ assumption 256, 258
one seller venues see grocery stores; specialty stores; supermarkets
one worker breadwinner model 247
open air markets 90, 93, 94, 102, 103, 104, 106, 111
‘other essential expenses’ see non-food non-housing (NFNH) costs
outliers, in price data analysis 102
overcrowding 120, 121, 143, 145, 146
overtime pay 272, 274, 3334
owner occupied housing
in household expenditure statistics 171
user costs as a proxy for rental cost 1638
Oxfam 7
Pacific 168, 215, 250, 252, 253
Pakistan 7, 88, 179, 234, 235, 290, 291
Panama 288, 300
Paraguay 16, 288
part-time employment
lack of accepted definition 254
secondary data 259
sources of data 254
partial payment of wages, in kind benefits see in kind benefits
paternity leave 274
pay deductions
for in kind benefits
limit on amount 286
requirement to inform workers 2934
see also statutory payroll deductions; voluntary deductions from pay
pensions 271, 274
person-specific statutory deductions from pay 265
Philadelphia Declaration Annex to ILO Constitution (1944) 3, 10, 11516
Philippines 16, 290, 291
photos, from housing cost surveys 155
physical activity, calorie requirements 38, 39, 40
physical activity levels (PAL) 38
physical activity ratios (PAR) 38, 40
plantains 47, 51, 52, 60, 63, 66, 70, 74
Plantations Convention 110 (ILO) 293, 295
politicians, decent wage estimates 312
Pope Leo XIII 2
population density, and community services 118
Portugal 289, 291, 292
post checks of NFNH costs 18081
carrying out 1979
in living wage reports 330
see also education cost post check; health care cost post check; transportation post check
potatoes 44, 52, 56, 63, 66, 70, 73, 74, 81, 91, 93, 94
poverty line
diets 28, 33, 34, 49, 61
wages 14, 21, 22, 113, 169, 172, 181, 234, 308, 309, 31012
powdered milk 52, 88, 89, 93
pre-primary school 221, 224
pregnancy, calories requirements 40
preliminary NFNH estimates 23, 29, 169, 18081, 186, 187, 210
prepared cereals
in a model diet 47, 51, 52, 60, 63, 66, 70, 74
nutrition content and percent inedible 79
selecting for price collection 91
typical size (in purchased grams) 85
pretests, food price surveys 98
prevailing wages
comparison of minimum wages and 31718
determining 20
determining gap between living wage and 6, 1112, 25
background 26970
general principles 2715
in living wage reports 270, 3334
primary data 30
see also in kind benefits
wage ladder tool 3089
price points, in food price collection 978
primary data
collection 5, 256
living wage estimations 2830
primary education 215, 216, 2234, 225, 228
Principles of Health Housing (WHO) 116, 117, 1447
private medical insurance 272, 274
private school attendance 215
production bonuses 2723
profit, from in kind benefits 292, 297
protection
against communicable diseases 1456
against injuries, poisonings and chronic disease 1467
Protection of Wages Convention 95 (ILO) 270, 2934
protein-rich foods 60
proteins 423
amount needed 43
national standards 40
percentage of calories from 35, 36, 42, 43, 60, 62
see also calories; model diet
provident funds 271, 274
public
interest in determining gap between prevailing wages and living wage 25
use of credible living wage estimates 15
public-private partnership initiatives 2, 7
pulses see legumes/beans/pulses
purchasing power, updating a living wage estimate to ensure it retains 33940
purchasing power parity (PPP) 164, 31011, 321
quality of foods, for price collection 96
quantities of food, in a model diet 36
Rainforest Alliance (RA) vii, 2, 7, 13, 118, 127, 135
rapid assessment post checks see post checks for NFNH costs; education cost post check; health care cost post check; transport post check
Reconstruction and Development Programme (South Africa) 123
record-keeping, in kind benefits 292
reference family size 24
approach to determining 2339
background 231
calories needed 39, 412
conceptual framework 2313
examples 23941
in living wage reports 332
one full-time worker assumption 256
recording secondary data 2434
secondary data 29
reference points, inclusion in wage ladders 309
relative food prices, taking account of 5961, 6872
remuneration
defined 270
determination of prevailing wages 20
wages/living wage comparisons
common forms and inclusion/exclusion 269, 2724
deciding on forms to include 2712
forms claimed by employers and
inclusion/exclusion 2779
see also in kind benefits; statutory payroll deductions
rent
estimating using rent per square meter 120, 1579
measurement of adequate living space 11920
primary data 28
rental cost surveys 22
data analysis and presentation 1559
data collection form 1525
in living wage reports 329
local housing standards
finding rental units to visit that meet local housing standard 15052
usefulness of visiting range of housing above and below local housing standard 152
locations to visit 14850
number of neighbourhoods to visit 150
rural-urban differences 152
replacement costs, home-prepared meals 42, 2989
representative prices, food items 1024
researchers
living wage estimates from 31112
use of credible living wage estimates 14
rice 52, 74, 78, 90, 93, 94, 96, 104, 295
rights see housing; human rights; workers’ rights
Rockefeller, J. D. 3
Roosevelt, F. D. 180
roots and tubers
local food price surveys 91
in a model diet 47, 51, 52, 60, 63, 66, 70, 74
nutritional content and percent inedible 81
venues for purchasing 94
Ruel, M. 44
rural areas
calorie requirements 39
extension of Anker methodology to 7
houses in, developing countries 165
see also Dominican Republic; Malawi
rural-urban differences
costs of decent life style 25
family size 237
fertility rates 234
housing standards 118, 12930
labor force participation rates 251
NFNH to Food ratio 177, 17880
numbers of workers per family 248
part-time employment 254
rental cost surveys 152
unemployment rates 252
Rut Tufts 307
Rwanda 44
safe water 115, 131, 143, 145
salario digno 1
salt 51, 54, 65, 75
sanitation facilities 115, 131, 143, 145
sauces 51, 54, 65, 75, 77
Schofield equations 37, 39
school attendance 215, 2234
school enrolment 21516, 2256, 228
school lunch 42
seasonal part-time work 254
seasonality, adjustment of food prices for 1058
secondary data
collecting 26
household expenditures for utilities 1623
household size, average 29, 234235
labor force participation rate 259
living wage estimation 2830
local housing conditions 1323
part-time employment 259
prevailing wages, measurement of 30, 26980
recording, reference family size 2434
statutory deductions from pay 30, 2636
total fertility rate 29, 2367
unemployment rate 259
secondary education 215, 216, 224, 2256
Senegal 287, 290
service life of a house 166
severance pay 271, 274
Seychelles 290, 291, 292, 300
Shanghai 27
Shenzhen 120, 124, 126, 149, 256, 257, 264
single-person households 235
Slovakia 291, 292, 300
slums 1423, 168
Smith, A. 2
Social Accountability International (SAI) vii, 12, 13, 229
soft drinks 48, 72
solid waste disposal 145
South Africa (living wage study)
data collection 26
in kind benefits 28690, 287
living space 120, 123, 125, 126
model diet 44, 89
NFNH cost estimation 176, 185, 186
number of workers per family 256, 257
study locations 27
updating living wage estimate for inflation 340
South Asia 45, 143, 216, 250, 253
Southeast Asia 45, 171, 250, 252, 253
soy 47, 52
Spain 289, 300
special circumstances, in kind benefits 284
specialty shops 101, 103
SPHERE 163
spices 51, 54, 65, 75, 77, 88
spoilage (food) 55, 65, 75
Sri Lanka 7, 51, 77, 123, 125, 126, 166, 175
stakeholder dialogue 6
standard of living
updating living wage estimate for improvements in 341
see also decent standard of living
standard-setting organizations
commitment to living wage 13
housing standards 11819
interest in determining gap between prevailing wages and living wage 25
living wage in codes of practice 1
starchy fruits and vegetables
local food price surveys 91
in a model diet 47, 51, 52, 60, 63, 66, 70, 74
venues for purchasing 94
starting diet 578, 61, 62
Statistics South Africa 15961
statutory payroll deductions 24
background and conceptual framework 263
calculating take home pay 2656
example 266
in living wage reports 333
secondary data 30
types 2645
Stellenbosch model diet 44
Stern School of Business 149
storms, and food prices 99
street sellers 93, 94, 102, 103, 104, 106, 111
Sub-Saharan Africa
additional funds to assist parents and relatives 238
calories derived from dairy products 45
educational quality indicators 216
family size 237, 238
fruit and vegetable consumption 44
labor force participation rates 250
reference family size 234
secondary school enrolment 215
slums 143
unemployment rate 252, 253
subjectivity 810
sugar
local food price surveys 90, 91, 95
in a model diet 46, 54, 62, 64, 68, 72, 75
nutritional content 83
typical size 85
venues for purchasing 93, 94
supermarkets 93, 94, 101, 103, 104, 105, 112
supplementary tutoring costs 21819
surface water drainage 1456
sustainability see margin for unforeseen events
Sustainable Agriculture Network (SAN) vii, 2, 13, 118, 127
Sustainable Trade Initiative (IDH) 2, 7
Swaziland 290, 291
tables
education costs 22021
health care costs 209
for labor force variables 261, 262
for recording reference family size 2434
rental cost surveys 1557
to include in living wage reports 3368
transportation post check 2023
Take home pay 8, 18, 19, 24, 2636, 272, 333, 336
see also disposable income; net living wage
Tanzania 7, 287, 290, 291
tax laws 162, 266
taxable income 2656
taxes 29, 167, 264
tea
local food price surveys 92, 95
in a model diet 48, 54, 62, 68, 72, 75
nutritional content 84
venues for purchasing 94
Tea Association of Malawi (TAML) 7
tea estates see Malawi
Thrifty Food Plan (US) 54, 55, 76
Tiffany vii, 6
time off for holidays and leave 274
times, to avoid collecting food prices 989
tobacco 17071, 180, 186
Togo 219
toilet facilities 115, 131, 143, 145
total fertility rate 234, 235, 236, 237, 239, 240, 241, 242
trade unions 2, 14, 25, 311
training, price investigators 967
transparency, of Anker methodology 4, 5, 17, 22, 23, 270
transport
as an in kind benefit 2978
NFNH cost estimation 186
transportation cost post check 1723
in living wage reports 3312
steps in carrying out 200204
Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, ILO (2006) 293
truck system 282
Tschirley, D. 109
tubers see roots and tubers
Tunisia 125, 126, 300
Uganda 219, 290, 291
Ukraine 289, 291, 292
UN-Habitat 116, 121, 132, 141, 1423
unemployment rate(s)
data sources 2524
definition 2512
rural-urban differences 252
secondary data 259, 260
subjectivity in 910
variations in 248
UNESCO 215, 216, 219, 223
UNICEF 14, 132, 216, 223, 226
United Kingdom
living space 120, 121, 125, 127
living wage 1, 10
valuation method for in kind benefits 291
United Nations 122
Declaration of Human Rights (1948) 3, 115, 214
Declaration of the Rights of the Child (1959) 214
Millennium Development Goals 14, 15, 142, 215
Universal Declaration of Human Rights 115
United States
family water requirements 163
food wastage 55, 56
housing conditions 119
in kind benefits 286, 290, 291, 292
living space 122, 127
living wage ordinances 1
maintenance and repair costs 1667
meals eaten away from home and NFNH costs 171, 185
minimum wage law, Massachusetts (1914) 230
United States Department of Agriculture (USDA) 50, 54, 55, 76, 77
Universal Declaration of Human Rights 115
unpaid family work 9, 249
unpaid vacation days 274
urban areas
average household size 234
overcrowding in developing countries 121
see also rural-urban differences
urbanization, unsafe solid waste disposal 145
user cost of housing
for acceptable housing in living wage reports 329
owner occupied housing as a proxy for rental cost 1638
utility costs
data collection 1613
in living wage reports 329
owner occupied housing 167
primary and secondary data 29
UTZ 2, 7, 13
value chain dialogue 6
value of meals prepared at home, replacement costs 42
variety in a diet 514, 65, 75
vegetables
local food price surveys 88, 91, 95, 1045, 107, 108
in a model diet 21, 35, 435, 51, 53, 62, 64, 68, 70, 73, 75
nutritional content and percent inedible 8081
typical size (in purchased grams) 85
venues for purchasing 90, 93, 94
see also green leafy vegetables; starchy fruits and vegetables
ventilation 131
Vietnam
Anker methodology in 7
cash allowances 273, 275, 276
education costs 217, 219
fertility rate 241
food preparation for sale 55
housing law (2015) 124
living space 120, 124, 125, 126
low food wastage 56
minimum wages 1
national database for calorie requirements 40
NFNH cost estimation 171, 176, 179, 185
problem of model diet based on current food expenditure 49
purchase of bottled drinking water 163
reference family size 241
statutory payroll deductions 264
vendor willingness to provide information on prices 100
voluntary deductions from pay 263, 265
Wage Indicator Foundation 1516
wage ladder
defined 3078
examples 31215
in living wage reports 334
tool 30812
wage trends
in living wage reports 3345
recent 31520
wages
adjustment for inflation 315
defined 270
indexing to a base year 31516
primary and secondary data 30
see also living wage(s); minimum wages; prevailing wages; remuneration
walls and housing standard 131, 136, 137, 139
Wang, S. 120
wastage (food) 55, 56, 65, 75
water
access to safe 115, 131, 143, 145
utility costs 1623
weekdays, food price collecting 98
weekend, food price collection 98
weekend pay supplements 272
weighing foods, for price collection 99100
wheat 52, 556, 74, 78, 90, 91, 100, 295
Worker Rights Consortium 312
workers
asking about rent for acceptable local housing 15961
assistance in food price collection 97
and in kind benefits
agreement to 284, 294
requirement to inform when deducted from pay 2934
see also factory workers; migrant workers; number of full-time equivalent workers per family
Workers’ Housing Recommendation 115 (ILO) 116, 117, 144, 293
workers’ rights 14, 269, 299
workplace meals, replacement cost 42
World Bank 14, 216, 228, 321
data on GDP per capita 342
International Comparability Program (ICP) 119, 164
poverty line wages 31012
World Development Indicators 132, 215, 240, 311
World Health Organization (WHO) 162
model diet 21, 34, 35, 37, 39, 40, 43, 44, 46, 47, 48, 76
Principles of Health Housing 116, 117, 1447
World Health Survey (2002-03) 44
Wozniak, L. 273
youth labor force participation rates 249, 250
youth unemployment rates 252, 253
Zhengzhou 264
Zimbabwe 290, 291