Introduction

Chapter 1 briefly reviews the concept of a living wage, shows that it has a long and distinguished history and has had a recent upsurge in interest and acceptance from governments, multinational companies, unions and NGOs. It is shown that there is a general consensus on its definition, and the living wage definition agreed on by the organizations that are partners in the Global Living Wage Coalition is presented. Chapter 1 discusses why a new methodology is needed to measure living wages around the world, gives an overview of the principles behind the Anker methodology for estimating a living wage, discusses the extensive experience in using the Anker methodology in living wage studies in urban and rural locations around the world, indicates why some subjectivity is not an obstacle to economic concepts, and how a living wage differs from minimum wage. This chapter points out that living wage studies are designed not only to estimate a living wage, but also to put that estimate into context as a catalyst to further action.