Indicator: Employment in a quality job

Why it matters

According to the Organisation for Economic Co-operation and Development (OECD), job quality is a key determinant of individual well-being. Higher wages and benefits are associated with multiple aspects of worker well-being, including life satisfaction, mortality, wealth accumulation, and mental health. A living wage is defined as “the minimum economic standard that, if met, draws a very fine line between the financial independence of the working poor and the need to seek out public assistance or suffer consistent and severe housing and food insecurity.” As this definition by the Massachusetts Institute of Technology (MIT) Living Wage Calculator indicates, a living wage is a minimum threshold, yet it typically exceeds the minimum wage. For instance, the living wage for a single mother with one child in the Atlanta metropolitan area is $30.74 per hour—more than four times higher than the local minimum wage of $7.25.621 For those who pursue postsecondary education, it is also important to consider whether they are earning what they expect to earn in their field beyond the living wage threshold.^xiv

Non-economic aspects of job quality also matter for workers’ well-being and success. A recent study shows that aspects of job quality, such as stable and predictable scheduling and room for upward growth within a company, are meaningful to low-wage workers, defined as those earning less than approximately $40,000 per year. As with wages, there are disparities in other aspects of job quality. For instance, less than half of low-wage workers report having a supervisor who offers them flexibility regarding work-life balance, with only 29 percent of Latino respondents reporting sufficient flexibility compared with 40 percent of White workers and 43 percent of Black workers.

^{xiv This is what the Postsecondary Value Commission calls “earnings premium.”}