Living Wage Calculator 2017
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Reviewed by Calculator Editorial Team
The Living Wage Calculator 2017 helps you determine the minimum wage needed to provide a decent standard of living for a single person in your area. This calculator uses 2017 data and assumptions to provide an estimate of the living wage based on your location and family size.
What is the Living Wage?
The living wage is the minimum income needed to cover basic living expenses, including housing, food, transportation, and other essential needs. It's designed to provide a decent standard of living for a single person or family.
In 2017, the concept of the living wage gained significant attention as more countries and organizations began to calculate and promote these figures. The living wage is typically calculated based on the cost of living in a specific area and adjusted for family size.
The living wage is not the same as the minimum wage. While the minimum wage is the legally required wage for workers, the living wage is a higher amount that provides for a basic standard of living.
How to Calculate the Living Wage
The living wage is calculated by determining the cost of living in a specific area and then adjusting for family size. The basic formula used is:
Living Wage = (Cost of Living Index × Basic Needs Cost) / Family Size
Where:
- Cost of Living Index - A measure of how much it costs to live in a particular area
- Basic Needs Cost - The estimated cost of essential goods and services needed to maintain a basic standard of living
- Family Size - The number of people in the household
For example, if the cost of living index in your area is 120, the basic needs cost is $2,000 per month, and you have a family of four, the living wage would be calculated as follows:
Living Wage = (120 × $2,000) / 4 = $60,000 per year
Factors Affecting the Living Wage
Several factors influence the calculation of the living wage, including:
- Location - The cost of living varies significantly between cities and rural areas
- Family Size - Larger families require higher living wages to cover additional expenses
- Inflation - The living wage must be adjusted for inflation to maintain its purchasing power
- Taxes - Local and federal taxes can affect the net income available for living expenses
- Healthcare Costs - The cost of healthcare can significantly impact the living wage calculation
These factors are considered when calculating the living wage to ensure it provides a realistic standard of living for the target population.
Comparison of 2017 Living Wage Data
The following table compares the living wage estimates for different cities in the United States in 2017:
| City | Single Person | Family of Four |
|---|---|---|
| New York, NY | $28.50/hour | $35.00/hour |
| Los Angeles, CA | $22.00/hour | $27.00/hour |
| Chicago, IL | $20.00/hour | $24.50/hour |
| Houston, TX | $18.50/hour | $22.00/hour |
| Phoenix, AZ | $17.00/hour | $20.50/hour |
These estimates are based on the cost of living in each city and the number of people in the household. The living wage varies significantly between different locations due to differences in the cost of living.