Living Wages worldwide: cost of living data collection and calculations

Abstract

This WageIndicator report on Living Wages is an update from an earlier report in 2019 on WageIndicator's Living Wages. 

Since October 2013, WageIndicator collects 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 of the report). Two recent examples: On 9 November 2021, WageIndicator presented the Living Wage data collection methodology as part of the OECD Living Wage Workshop. On 24 June 2021, WageIndicator contributed to a discussion about implementation of Decent Wages in Tea Estates, Ready Made Garment, Leather, and Construction in Bangladesh.

• Updated version of the report from May 2022: Guzi, M., Amanquarnor, N., Ceccon, D., Kahanec, M. & Tijdens, K. (2022). Living Wages worldwide, update 2022. Amsterdam, WageIndicator Foundation, May.