No abstract

In many high-income countries, governments seek to ensure that households at least have sufficient incomes to afford basic essentials such as food and clothing, but also to help citizens reach socially acceptable living standards allowing full participation in society. Their success in doing so is commonly monitored in terms of how many citizens are below a poverty line set relative to median income, and by how far below it they fall (the 'poverty gap'). Yet the threshold below which this gap starts to be measured is arbitrary, begging the question of what level of low income needs addressing. A more ambitious measure, presented in this paper, considers the extent to which people fall short of a benchmark representing a socially agreed minimum standard. This 'low income gap' can be used to represent the distance a society has to go to eliminate income that is undesirably low. The paper presents the indicator, its meaning and some recent trends in the United Kingdom, where the methodology behind the indicator has been pioneered. The results demonstrate that this empirically derived benchmark has the potential to be of value in other countries, in assessing whether they are making progress in reducing low income.

This paper explores the ways in which consensually-defined, socially-constructed living standards could be helpful in providing new ways of understanding living standards in Mexico. A pilot study formulating a “Minimum Income Standard”, carried out in the country in 2016, asked members of Mexican society what they consider to be necessary to achieve a dignified standard of living in urban Mexico today. Participants discussed the meaning of a dignified standard of living and translated such definition into concrete items in a hypothetical living room and in leisure time. Our study reveals that social participation, security, and employment are seen as important elements to live a dignified standard of living, which permeate the rationale for identifying the goods and services seen as needed to achieve a dignified living standard. The definition of a dignified standard of living could usefully inform and contribute to the ongoing debate on wage adequacy in the country.

This article explores the ways in which home furnishings and the ability to decorate one's living room form part of a dignified standard of living. The analysis uses data from the Minimum Income Standard (MIS) project in Mexico, which finds the income required to achieve a decent standard of living based on what members of the public consensually define. Six focus groups were carried out in Monterrey and Mexico City in 2016 and concentrated on listing the items that any living room in a family with children in that country should have in order to achieve a dignified standard of living. Results indicate that a dignified standard of living entails more than just having access to housing and includes the ability to produce a home. Being able to imprint one's personality and to feel connected with society were understood as crucial components of a dignified standard of living. Consequently, participants in the study in Mexico stressed the importance of furnishings and decoration in the living room that fulfil a practical function but also help to satisfy the need for self-identification and connectedness with society.

The 'living wage' is an old idea that has experienced a dramatic resurgence of political popularity in recent years. The underlying logic of the concept is quite clear: it is a wage that provides workers with enough income to live on at some level considered adequate. However, in practice the term has become blurred with that of the 'minimum wage' and in its implementation it has lacked a consistent meaning despite being widely used as a campaigning slogan. <br><br>This short primer traces the origins of the concept of the living wage and seeks to explain the current rise in its fortunes as an economic instrument with a social objective. It examines its impact on labour markets and wage levels, explores how it has been applied, and assesses whether it is an effective measure for raising living standards. <br><br>It offers a broad-ranging analysis of the debates, policy developments and limitations of wage floors in developed economies and will appeal to a wide readership in economics, public policy and sociology, as well as those working in non-profit and non-governmental organizations.