Definition of Living wage:
A wage that is high enough to maintain a normal standard of living.
That allows a family to meet its basic needs, and provides it with some ability to deal with emergencies, without resorting to welfare or other public assistance.
The idea of a living wage and its effects on the economy is hotly debated. Critics argue that implementing a living wage establishes a wage floor, which harms the economy. They believe that companies reduce the employees hired if they have to pay increased wages. This creates higher unemployment, resulting in a deadweight loss, as people who would work for less than a living wage no longer get offered employment.
A living wage refers to a theoretical income level that allows an individual or family to afford adequate shelter, food, and the other basic necessities. The goal of a living wage is to allow employees to earn enough income for a satisfactory standard of living and to prevent them from falling into poverty. Economists suggest that a living wage should be substantial enough to ensure that no more than 30% of it gets spent on housing.
How to use Living wage in a sentence?
- The living wage is often suggested to be quite a bit higher than the legally-mandated minimum wage.
- They were no longer sure of earning a living wage there.
- The living wage was the highest in the nation in this city so that effected everything and the system functioned well.
- In order to live outside of my parents ho,e. I had to earn a living wage , so I could support myself and my wife.
- A living wage is a socially-acceptable level of income that provides adequate coverage for basic necessities such as adequate food, shelter, child services, and healthcare.
- The United States Government has been attacked on many occasions for the fact that most states minimum wage is not an appropriate or even viable living wage .
- The living wage mandates that no more than 30% be spent on rent or a mortgage, and is sufficiently greater than the poverty level.
Meaning of Living wage & Living wage Definition