The living wage model accounts for basic needs like childcare, health insurance, housing, transportation and other necessities. It is used as an alternative to the federal poverty measure, which does not take into consideration some of those costs.
Los Angeles County supervisors voted to increase the minimum wage from $9 to $15 an hour for the greater L.A. area, but is it a livable wage? Data analysis from MIT shows how much a household would actually need to earn annually to live in L.A. County.
Select a household:
One adult, one child
One adult, two children
One adult, three children
Two adults, one child
Two adults, two children
Two adults, three children
New minimum wage ($15/hr*): a year ( of the living wage)
These figures show the breakdown of typical costs in Los Angeles County for your selected household, according to MIT’s living wage calculator.
*Not adjusted for inflation. Assumes both adults are making $15/hr. Note: Although the living wage model is a step above poverty, it doesn’t take into consideration extras such as entertainment, eating at restaurants, or being being able to save and invest.
Source: Living Wage Calculator, Massachusetts Institute of Technology