What is a living wage?
When we hear discussions regarding policy, the phrase “living wage” often comes up. Sometimes it regards a minimum hourly wage; other times, it is used in the context of universal basic income.
As we expand this living wage discussion from a local to a nationwide discussion, we will run into some challenges. In this discussion, your task is to:
Pick a challenge that would make it difficult to define a set “living wage” across a nation
Explain why this challenge creates a difficulty, and the obstacles it makes to create good police.
Hint: To review minimum wage as an example of a price floor, re-read 4.1 “Demand and supply at Work in Labor Markets” and the Clear It Up discussion.
Learning Objective: Explain price floors in the labor market such as minimum wage or living wage
