anker living wage methodology

Both are based on the size of a typical nuclear family for a region. National Bureau of Statistics Tanzania (2015). The Institute is led by Richard Anker and Martha Anker, and is currently hosted by Social Accountability International (SAI) in New York, USA. /gs5 89 0 R x+ | Food prices for Sidama were collected in July 2018 at multiple vendor locations, covering markets and small shops in the villages Tula, Yirgalem and Wugigra. The Living Income Methodology provides a transparent local benchmark that can be used to assess development opportunities of rural households, by employers in rural areas, including farmers hiring in labour, while respecting basic human rights on a decent living. endobj https://doi.org/10.1007/s12571-015-0480-7. Companies, standard setting organizations, governments, trade unions, international organizations, NGOs and the public are interested in knowing this gap. It estimates the cost for a typical family in a location of a basic but decent living standard - the living income. >> Similar to Anker and Anker (2017b) we set this at 2%. 2017), 80% of whom live in rural areas (Uganda Bureau of Statistics 2014). First, a selection of cheap and commonly-consumed foods is identified within each food group from the available foods at multiple local vendors, such as open-air markets and small village shops, specifically the places where the poor buy their foods. Wehmeyer, A. S., & Rose, E. F. (1983). endobj Essential items reported most frequently by informants (n5) as parental responsibility were: uniform, shoes and a schoolbag (category Clothing), books and supplies (category Materials), school maintenance fee, exam fee and security fee (category Fees). 23). Context provided in horticulture industry. (2016). >> Kampala, Uganda. >> Home-produced foods are valued against market prices. The United Republic of Tanzania has over 57 million inhabitants, 67% of which live in rural areas (World Bank 2018a). The Tanzanian education system includes seven years of primary education (ages 713) and 4years of secondary education (ages 1417). (2008). Coalition (Ed. Learn more. It was developed by living wage experts Richard Anker (formerly ILO) and Martha Anker (formerly WHO), who spent over 15 years testing and perfecting the various aspects of the methodology. First, information is collected in new fieldwork on the local cost of acceptable education and health care. /Parent 2 0 R 4. /T1_2 35 0 R 1. Food price data were collected from several vendor locations in July 2018 in Tula and Wugigra, capital towns of Wondo Genet and Melga districts, respectively. 53): https://www.globallivingwage.org/wp-content/uploads/2018/04/living-wage-report-rural-vietnam.pdf: Research Center for Employment Relations, Global Living Wage Coalition. 52): https://www.globallivingwage.org/living-wage-benchmarks/rural-pakistan/: Global Living Wage Coalition. Voorend, K., Anker, M., & Anker, R. (2018). /CropBox [21.1441 21.1458 462.149 684.163] 33: . Tanzania, Uganda and Malawi are low-income countries; Kenya used to be a low-income country before it officially graduated to be a lower-middle income country in 2014 just before the study in 2015 (World Bank 2018c) for which an international poverty line of US$ 3.20 was set (Jolliffe and Prydz 2016). PDF Methodology - Living Wage For US /CropBox [21.1441 21.1458 462.149 684.163] Figure 2.1Cost of a basic but decent life for a family, Figure 2.2From cost of basic but decent life to net living wage, Figure 2.3From net living wage to gross living wage. How large do farms need to be to provide a living income from agriculture? Despite the lack of agreement and the many methodological issues, and given the urgency to address poverty and injustice amongst the poor, Anker and Anker (2017b) developed a methodology to calculate a living wage, which is supported by several international NGOs (ISEAL Alliance 2020; Living Income Community of Practice 2020). /Trapped /False /Producer (Adobe PDF Library 10.0.1) International Labour Review, 145(4), 309338. Overview of cost items included in the Living Income Methodology. >> /BleedBox [21.1441 21.1458 462.149 684.163] /GS2 24 0 R The decision on where to collect primary data on food prices and housing costs needs to balance the need for (i) a living wage to be place-specific, (ii) advantages of being able to generalize a living wage estimate to larger areas, and (iii) limited budgets for fieldwork. Next, the Living Income Diet Tool is used to calculate the lowest-cost diet per AME, The Living Income Diet Tool is an optimization model and described in detail in OnlineResource 3. (2004). /Parent 2 0 R 6 0 obj << 2. In creating a methodology for estimating living wages across the U.S., we strove to align as closely as possible with the principles described in the global gold standard Anker Methodology developed by Richard Anker and Martha Anker. Living wage report for lower Volta river area, Ghana: Context provided in the banana sector. Subsequently, it checks if the calculated NFNH cost cover the health care and education costs based on a rapid assessment using local primary and secondary data. /ColorSpace << (23 pp) Oxford, OXFAM GB. A new methodology and international comparable estimates. Nutrient composition of kocho was obtained from Ethiopian Food Composition Table part IV (FAO and Ethiopian Health and Nutrition Research Institute 1995). The Anker (2011) review of living wage methodologies provides some information on this. Tanzania mainland - household budget survey main report 2011/12. The share of the population living below the poverty line decreased from 31% in 2006 to 20% in 2013. The developing world is poorer than we thought, but no less succesful in the fight against poverty. >> ILO declaration on social justice for a fair globalization (p. 25). The living wage estimate in this report is based on a study of costs of living in these peri-urban areas. Manual for measurement. Appleton, S. (2003). /MediaBox [0.0 0.0 484.205 705.307] The component food costs is calculated per adult male equivalent, as food requirements areage and gender specific and subsequently converted into adult equivalent. Hammond, J., Fraval, S., van Etten, J., Suchini, J. G., Mercado, L., Pagella, T., Frelat, R., Lannerstad, M., Douxchamps, S., Teufel, N., Valbuena, D., & van Wijk, M. T. (2017). /GS1 22 0 R Based on their review, Croes and Vermeulen (2016) conclude that no agreed international system or standard is available for determining a fair minimum wage. /CropBox [21.1441 21.1458 462.149 684.163] This guards against the extrapolation method replicating poor living conditions as it is based on currently observed expenditure according to available household expenditure data. In rural areas in low-income countries often complex socio-economic relations prevail. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. 5. << from poverty line, nutritionists, household surveys, FAOSTAT); nutritional content and percentage inedible of each food; percentage distribution of food expenditure from another source used only as a check on the model diet. the large number of eggs per day in Ethiopia (Table 3). Living wage report Kenya with a focus on rural Mount Kenya area. In South Africa where the wine grape growing area covers several hundred kilometers, we selected a single typical area that was considered by local key informants as having typical prices and living costs for the wine grape growing region. /ArtBox [21.1441 21.1458 462.149 684.163] Living wage report for urban and rural Pakistan, Sialkot, north eastern Punjab with context provided in the sports ball manufacturing industry. USDA (2018). >> /Filter /FlateDecode >> /ExtGState << This is not as straightforward as it might seem, because remuneration has many components (e.g. 13): https://www.living-income.com/papersandreports, ISEAL Alliance, Sustainable Food Lab, GIZ. The Living Income is gaining importance for NGOs, governments and companies to support development of rural areas (Gneiting 2018; Huetz-Adams et al. Expressing the income in either unit is inadequate when applied to smallholder farming. The Global Living Wage Coalition is delighted to announce the new Anker Reference Value methodology, the next step on our journey to measure and improve Living Wages and Living Incomes around the world. Neither of these allow for the fact that the number of persons in a family can vary widely within a region and therefore the benchmark is not applicable to individual households. /TrimBox [21.1441 21.1458 462.149 684.163] Living wages around the world: Manual for measurement - ResearchGate This helps stakeholders and others to understand the basic but decent standard of living that the living wage is based on. Chapter 11: Provision for unexpected events and sustainability The Anker Methodology is a widely accepted and published methodology to estimate living wages that is both internationally comparable and locally specific. Education costs include all annual household-out-of-pocket expenses to cover decent public primary and lower secondary education for all children in the reference household. Information on the types of in kind benefits provided by employer. Therefore, in order for workers to have enough net pay (after deductions), statutory deductions that would be assessed to workers earning a living wage need to be added to the net living wage estimate to get a gross living wage estimate. Answering Living Wage Questions in the B Impact Assessment /GS2 84 0 R /ExtGState << /Rotate 0 In the AE, the first adult in a household is assigned value of 1.0, all additional adults a value of 0.7 and children a value of 0.5, accounting for economies of scale in the needs of household members, e.g. The Anker Methodology (Anker and Anker 2017b) is detailed and, if the guidelines are followed, takes on average about 60 person days for a full study including broad stakeholder engagement (Bhattacharyya 2018). /CS0 [/Separation /All /DeviceGray 21 0 R] Education costs (key informants, focus group discussion, secondary reports). Discussions with workers and key informants to possibly modify local housing standard. Special rules are provided for how to value in kind benefits because of their controversial nature. The housing construction should be able to sustain about 50years without major repairs also called the expected service life of the house (Anker and Anker 2017b). /T1_4 51 0 R The data collection in the Anker Methodology reverts more often to national statistics and surveys, e.g. Housing costs (key informants, focus group discussion, secondary reports). uniform, registration and security fee) and saved on optional items such as books. This has the advantage of further increasing the normative basis of a living wage estimate as well as its transparency. /ExtGState << /ColorSpace << /CS0 [/Separation /All /DeviceGray 21 0 R] In this article we propose a simple method that can be used in all types of development projects to benchmark a rural living income. >> Ferreira, F. H. G., Chen, S., Dabalen, A., Dikhanov, Y., Hamadeh, N., Jolliffe, D., Narayan, A., Prydz, E. B., Revenga, A., Sangraula, P., Serajuddin, U., & Yoshida, N. (2016). 1995). This research was funded through various sources: strategic investment of the Plant Production Systems group, University of Wageningen, the Bill & Melinda Gates Foundation through the project N2Africa: Putting Nitrogen Fixation to Work for Smallholder Farmers in Africa (www.N2Africa.org) and a grant from the NWO-WOTRO Strategic Partnership NL-CGIAR. /BleedBox [21.1441 21.1458 462.149 684.163] Sub-national estimates are an extension of the Anker Research Institute Benchmark and National Reference Value methodologies. 13 0 obj What are the local minimum standards for decent housing for a rural household in relation to the international housing standards? << It is neither practical nor desirable to have a different living wage for every small area or neighborhood, partly because workers can commute to work and partly because of implication for study costs. OECD (2011). Most households reported expenditures only on strictly necessary items (e.g. /MC2 45 0 R >> SDG 2 addresses zero hunger and sustainable food systems (United Nations General Assembly 2015). /Font << However, Dikhanov et al. /ProcSet [/PDF /Text] /Type /Catalog /Resources << >> A small margin is added for sustainability and unforeseen events. 9. PubMedGoogle Scholar. Other well-known benchmarks are the minimum wage and the living wage. The resulting value of US$ 1.90 per capita per day is subsequently applied to all other low-income countries in the world. Estimating a living wage: A methodological review Chapter 2: Overview of the Anker living wage methodology This means that living costs for factory workers are usually lower than living costs for the city as a whole and especially for the city center. Download . /Type /Page >> These guidelines highlight potential methodological issues one could face in updating living wage benchmarks, and suggest solutions. The membership covers all public health care costs for six household members, including doctor consultation and complete treatment with medicine and laboratory tests for all common diseases. Huetz-Adams, F., Laven, A., Bymollt, R., & Tyszler, M. (2017). Home garden system dynamics in southern Ethiopia. Along with this methods paper, we provide the survey tool (Living Income Survey: Online Resource 2) and the Living Income Diet Tool for calculating a nutritious diet at minimum cost (Online Resource 3 and 4). /Contents [57 0 R 58 0 R 59 0 R] A next step we are taking is to deploy the living income bench mark to analyse the role of agriculture in rural livelihoods and sustainable development. A 'provision for unexpected events' is included the definition of living wage agreed upon by the Global Living Wage Coalition (see Chapter 1). https://www.globallivingwage.org/wp-content/uploads/2018/04/living-wage-report-rural-vietnam.pdf: http://databank.worldbank.org/data/reports.aspx?source=2&series=PA.NUS.PRVT.PP&country=GHA,BRA,ZAF,GTM,DOM,IND,KEN,MWI,PAK,ETH,UGA,TZA,VNM,USA, https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups, http://creativecommons.org/licenses/by/4.0/. In Kenya, we collected primary data in the area around Lake Naivasha where most flower farms are located. /gs4 39 0 R RURAL CAMEROON Check our website for more information Living Wage is 104,623 CFA (181 USD) 2020 COLLECTING DATA Estimates are from modeled data from Full-Anker Methodology benchmarks and institutions such as World Bank, FAO, ILO, and IMF. Key features of our methodology for estimating food costs include: Housing is usually the second largest expense for a worker and family in developing countries. In addition, everyone has the right to at least elementary education (Article 26.1). endobj Human energy requirements. /Font << OXFAM discussion paper. >> DataBank World Development Indicators. /MediaBox [0.0 0.0 484.205 705.307] We expressed the living income per adult equivalent, in contrast to the international poverty line (which is expressed as income per capita), to the Anker Methodology (living wage per worker) and to the Living Income Community of practice (living income per reference household). /Resources << /ExtGState << Thus some simplifications and short cuts were made compared with the Anker Methodology (Anker 2006; Anker and Anker 2017b), but other items were included more explicitly, such as costs for health careand education (Onlineresources 14). https://www.living-income.com Accessed 02-03-2020. /Resources << /T1_1 26 0 R Ideally it should not be below the living wage, but most low-income countries do not have the political power and financial means for this (Croes and Vermeulen 2016). 2a). Plant Production Systems, Wageningen University, PO Box 430, Wageningen, The Netherlands, Gerrie W. J. van de Ven,Wytze Marinus,Katrien K. E. Descheemaeker,Willem Hekman&Ken E. Giller, World Wildlife Fund, PO Box 7, Zeist, The Netherlands, Human Nutrition and Health, Wageningen University, PO Box 17, Wageningen, The Netherlands, College of Agriculture, Hawassa University, Hawassa, Ethiopia, International Institute of Tropical Agriculture (IITA), PO Box 10, Duluti, Arusha, Tanzania, You can also search for this author in /TT0 29 0 R 1 0 obj /CropBox [21.1441 21.1458 462.149 684.163] The Living Income Methodology presented here relies on a mixture of methods, triangulating information from household surveys, key informant interviews and secondary reports to assess the annual income required per adult equivalentto afford a decent standard of living. /F5 30 0 R /Font << 323: 18 Suggested outline of a living wage report. /T1_2 35 0 R The PPP conversion factor is the equivalent local currency required to buy goods and services in the domestic market equivalent to what a US dollar would buy in the United States. >> 18 (pp. endobj Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. In regions such as north Ghana with 1014 people per household (De Jager et al. /CropBox [21.1441 21.1458 462.149 684.163] /F5 30 0 R >> Labour is also shared or hired out, sometimes at the expense of their own production (Leonardo et al. New York: United Nations. All living income estimates were converted from national currency to US$ PPP, from per full time worker to per adult equivalent and from the year of study to 2017 to make them comparable across countries. The Anker Research Institute has begun a Living Wage and Income Corporate Sponsors Program to make it possible for the Anker Research Institute to continue providing its groundbreaking research on living wages and sustainable livelihoods as a public good to improve the living standards of workers and their families to a decent level throughout global supply chains. This living wage estimate was calculated using the Anker Methodology, the most . Policy Research Working Paper 7606 (pp. If not, additional time is required to review existing databases. /gs4 34 0 R 1). Hotz, C., & Brown, K. H. (2004). /Resources << 8 0 obj /MC0 52 0 R /Rotate 0 In Johannesburg, we found that factory workers commuted from separate townships such as Soweto that are themselves separate cities as Soweto has more than 1 million persons. There should be at a minimum separate living wages for rural and urban areas. /Contents [18 0 R 19 0 R 20 0 R] Tanzania food composition tables (p. 272). https://doi.org/10.1111/j.1467-7679.1976.tb00338.x. Dietary reference intakes for vitamin a, vitamin K, arsenic, boron, chromium, copper, iodine, manganese, molybdenum, nickel, silicon, vanadium and zinc. We adapted the living wage methodology of (Anker and Anker 2017b) and present a Living Income Methodology for rural households. >> /ColorSpace << We thank six referees for their critical reading and comments on earlier versions of the manuscript that helped us improve both the methods of calculation and the explanation. Report 11. /ProcSet [/PDF /Text] This manual describes a new methodology to measure a decent but basic standard of living in different countries and how much workers need to earn to afford this, making it possible for. Basic health care in Ethiopia was obtained from two public clinics. 108). /Rotate 0 >> 5 0 obj Anker, R., & Anker, M. (2013a). CAS 2. Overview of the Anker living wage methodology - Elgar Online: The Google Scholar. Specifically for low-income countries, where food constitutes a relatively large part of the living income, this is appropriate (World Bank 2018b). It is defined as the remuneration for a standard work week, necessary for a worker to meet his familys basic needs in a particular place (Anker and Anker 2013c). FAO (2020). The three most common diseases in this area as reported in patient records of the local health care centre were: malaria, urinary tract infection (UTI), and cough/flu. Most other living wage methodologies for developing countries assume either one or two workers per family (Anker, 2011). /GS0 22 0 R Learn more. To estimate a cost for the Living Income Methodology we follow the local minimum standard for basic healthy housing which is based on international standards for healthy housing adjusted to local conditions, such as material availability, climate, and the reference household size and composition. Absolute numbers living in poverty, however, increased due to the rapid population growth (Uganda Bureau of Statistics 2016). 2. Advises standards organizations, companies, NGOs, trade unions, and governments on how to measure prevailing wages, how to determine whether a living wage is being paid, and how to close living wage gaps. /T1_1 26 0 R /MediaBox [0.0 0.0 484.205 705.307] Report 9. /GS0 23 0 R Guidelines for measuring household and individual dietary diversity. /T1_1 26 0 R Agricultural Systems, 151, 225233. /BleedBox [21.1441 21.1458 462.149 684.163] 2017) and southern Mali with 845 household members (Falconnier et al. 44): Global living Wage Coalition. /T1_0 27 0 R 1. Estimating a living wage provides one side of an equation for comparing current wages with a living wage and determining if workers earn a living wage. Provision of social goods by the state is allowed to reduce the living wage. Sayeed, A., & Dawani, K. (2017). A combination of secondary reports (e.g. /ProcSet [/PDF /Text] 160). We use the US$ PPP for individual household consumption expenditure (US$ PPP-IHC), which is also the basis for the World Bankss international poverty threshold of US$ 1.90 per capita per day (World Bank 2015b). Google Scholar. Other living wage estimates from unions, NGOs, government. However, food produced on-farm and consumed by the household represents a monetary value, a remuneration for production costs, including labour. WORKING ADULTS IDH LIVING W AGE IDENTIFIER Full-Fledged Anker Methodology The Anker Research Institute (ARI), which is responsible for Anker Methodology Benchmark studies, is part of the Global . Report of a joint FAO/WHO/UNU Expert consultation, Rome, 1724 October 2001. /TT0 29 0 R Anker - Living Wages Around the World: Manual for Measurement Reference "It is neither practical nor desirable to have a different living wage for every small area or neighborhood, partly because workers can A/RES/70/1. productivity, attendance, annual, holiday, etc. This suggests that rural households in low-income countries require an income above the international poverty line in order to comply with all their basic human rights for nutritious food, healthy housing, decent health care, sufficient education and other essential needs. In Ethiopia primary school takes six years and secondary school four years and no school fees are paid. /GS3 24 0 R Based on our experience in the field in East Africa we recommend to include ten if possible, but at least five informants. In developing the Living Income Methodology we sought to balance detail and rapidity for each issue. Transforming our world: The 2030 agensa for sustainable develpment. In the real world all these factors vary widely and numerous combinations exist. Our methodology allows reference family size to vary by country and location depending on average household size and total fertility rate and child mortality rate in the location, with different reference family sizes for rural and urban areas common. Lastly for practical reasons, cost of other essential needs is estimated using an extrapolation method based on secondary household expenditure data. /T1_1 26 0 R The food costs are the sum of costs for a low-cost nutritious diet plus miscellaneous food costs. Price corrections were made for kocho, maize, kale, lettuce, tomato, carrot, onion, chili pepper, papaya, mango, orange, sheep meat, haricot bean and faba bean. A measured approach to ending poverty and boosting shared prosperity: Concepts, data, amd the twin goals. Amsterdam: Trueprice, Fairtrade. . The costs of basic needs approach is widely used to establish the national poverty lines (World Bank 2015a). 6). /ExtGState << A price correction was made for carrots, cabbage, papaya, sweet banana, dried tilapia, groundnut (flour), peas, and ghee. /TT0 29 0 R In addition, the composition of diets is sometimes questionable from a consumption perspective, e.g. >> Washington DC: World Bank. Social Accountability International, International Recruitment Integrity System (IRIS), Anker Living Wage and Income Research Institute, Multi-Stakeholder Dialogue in Tiruppur, India, Global Living Wage Coalition Benchmark Reports, Private Sector Strategies to Prevent & Eradicate Child Labor, Living wage and living incomes in global supply chains, The Anker Institute launches new initiative to ensure sustained support for living wage and living income research, Understanding Gender Pay Gaps, Equal Pay for Migrant Workers, New Living Wage Estimates, Bonuses, (e.g. Benchmark Study . In an AME, men, women and children are included, according to their energy needs. >> However, the margins in supply chains from farmers to retailers are unevenly distributed, with farmers least represented. It contributes to food security and income to escape poverty. For foods with strongly fluctuating prices within a year (>25%), what is the most common price throughout the year (per kg or L)? /Resources << About Us - Anker Research Institute An excel file is available to combine the survey and diet data into the living income (OnlineResource 4). /Length 6505 In this paper we focus on our adaptations from the Anker Methodology. >> /Type /Page This is in line with our findings that interviewees rarely incurred costs for all of the items listed. x][o#~09~Y\v$EB&9#"R&EMgTu^uO.^|tov/vW/jg9f}v&Lem]v293b7__>gWJ.FguaE7/_|_:c1&>Iw9!,gEj!Roiu:7/J^:Kge%6(z.[d'oa,rPo'i%M_0=v(;S,o. Living income benchmarking of rural households in low-income >> >> All three countries of our cases, i.e. Food costs are based on the cost of a low-cost nutritious model diet that is in keeping with local food preferences. Anker Research Institute - Research for Sustainable Livelihoods Some forms of remuneration such as overtime and deferred benefits are excluded. All data was collected in August 2018. Geneva: Internationa Labour Organization. /ProcSet [/PDF /Text] OnlineResource 1 gives the details on the food subgroups and the foods covered. /TrimBox [21.1441 21.1458 462.149 684.163] Given the importance of good healthcare and education for achieving adecent living, we explicitly address the local situation instead of using a relative share. /Direction /L2R 61): https://www.globallivingwage.org/living-wage-benchmarks/ghana/ Global Living Wage Coalition. This difference between the living income and national poverty line is likely due to differences in the data used, the bundle of goods and the year of assessment. See OnlineResource 5 for data overview. /BleedBox [21.1441 21.1458 462.149 684.163] PubMed Central Housing costs are estimated separately using a local healthy housing standard that is established based on international minimum standards and local housing conditions with the cost of such housing determined based on visits to local housing.
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