Indicator: Access to jobs paying a living wage Breadcrumb Home Indicators Access To Jobs Paying a Living Wage Definition Jobs that pay enough to meet basic family needs are available in a community. Recommended Metric(s) Percentage of jobs in a county or metropolitan statistical area (MSA) for which the ratio of average pay to the location-adjusted cost of living is greater than one. Type(s) of Data Needed Administrative data Why it matters A minimum wage is typically insufficient for individuals and families to meet basic needs, much less achieve economic mobility and security. According to calculations by researchers at Massachusetts Institute of Technology (MIT), under the current federal minimum wage ($7.25 per hour at the time of publication), two working adults would each need to work approximately 75 hours per week to meet the basic needs of a typical family of four.1 Although a growing number of states and municipalities are adopting minimum wages above the federal standard, earning more than minimum wage typically is required to establish economic resilience and build savings. In 2016, 58 percent of White workers were employed in a job that paid at least $35,000 ($17 per hour for full-time jobs) for workers between the ages of 25 and 44, and at least $45,000 ($22 per hour) for workers between the ages of 45 and 64.2 This share was 41 percent for Black workers and 37 percent for Latino workers nationwide. What to know about measurement This indicator requires a calculation based on the local cost of living and average wages in a local area. The Bureau of Labor Statistics publishes quarterly wage data at county, MSA, and state levels through the Quarterly Census of Employment and Wages. Cost of living data by county and MSA are published annually through MIT’s Living Wage Calculator. E-W Case Studies Image ImpactTulsa’s Child Equity Index ImpactTulsa partnered with Tulsa Public Schools to build a data visualization tool for exploring how environmental conditions vary across neighborhoods and their relationships to academic outcomes. View Case Study Source frameworks This indicator appeared in five source frameworks reviewed for this report. Our proposed measure builds on work by the Urban Institute, which also includes a measure of access to jobs paying a living wage, defined as “ratio of pay on the average job to the cost of living.” References 1Nadeau, C. A. (2020). New living wage data for now available on the tool. Living Wage Calculator. https://livingwage.mit.edu/articles/61-new-living-wage-data-for-now-available-on-the-tool2Carnevale, A. P., Strohl, J., Gulish, A., Van Der Werf, M., & Campbell, K. P. (2019). The unequal race for good jobs: How Whites made outsized gains in education and good jobs compared to Blacks and Latinos. Center on Education and the Workforce, Georgetown University. https://eric.ed.gov/?id=ED600048