Beyond the Minimum Wage: Bridging the Gap to a Living Wage
Beyond the Minimum Wage: Bridging the Gap to a Living Wage Exploring Economic Mechanisms, Taxation, and Shared Responsibility for a Decent Standard of Living By Ronen Kolton Yehuda MKR: Messiah King RKY Abstract The distinction between a statutory minimum wage and a living wage raises an important economic and social policy question: How can individuals who work normal hours earn sufficient resources to maintain a decent standard of living when their employment income falls below the cost of essential needs? While minimum-wage legislation establishes legally enforceable wage floors, living-wage methodologies assess the earnings required to meet reasonable living expenses. The difference between these measures presents challenges involving wage regulation, taxation, public finance, employment incentives, and the allocation of economic responsibility. This article examines existing international living-wage initiatives, wage-setting mechanisms, employment-related tax credits, and income-...