Living Wages worldwide: cost of living data collection and calculations - May

Abstract

In October 2013, WageIndicator developed a plan to collect data about the prices of food items. Given the huge numbers of web visitors, it seemed easy to post a teaser on all web pages asking web visitors for the actual price of a single food item. Once they had entered a price, they were asked to key in the prices of other items in the Cost-of-Living survey. Items asked about the prices of food, housing, drinking water, transport, and clothing and footwear. The methodology of the Living Wage data collection and calculation has been described in Guzi and Kahanec (2014, 2017, 2019) and Guzi et al. (2016). The available estimates allow users and stakeholders to share and compare Living Wages across countries and regions based on a harmonised methodology. This methodology facilitates quarterly updating of the database (see chapter 3.1. for further details of the history of the data collection). Since 2013, the data collection has advanced
successfully, evoking the interest of stakeholders in the field of Living Wages. Demands for detailed information about Living Wages beyond country-level arose, challenging the business model underlying the Living Wage data collection. The data collection started with funding from development aid projects and did not include delivery of data to multinational
enterprises. Hence, the cost of collecting data was estimated and prices had to be set. The first multinational client could be welcomed in 2018. Since then, WageIndicator has sold its regional Living Wages to a growing number of clients, both multinational enterprises and NGOs. WageIndicator applies the principle that the data collection in the Cost-of-Living
survey and thus the Living Wage calculations take place independently of employers or their organisations, workers or trade unions, or any other stakeholder. Since 2014 WageIndicator has taken part in the global discussion on Living Wages (see Annex 7). 

To finalise this introduction, we present an outline of the production process resulting in quarterly updated releases of Living Wage data on a global scale. Table 1 gives an idea of this recurring operation and the organisation behind it. The ensuing chapters elaborate each of the steps, with the choices behind their design and performance. The reader should be aware that this regards work in progress.