Updating Anker Benchmark Living Wage and Living Income Estimates It answers the question: how much does a typical household in a particular place need to earn, from all income sources, in order to achieve a decent standard of living?. 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. 2017). Check that these figures are comparable and that they cover the same: Context provided in horticulture industry. Comparing data across years and regions or countries requires conversion into comparable units, such as US$ PPP for a specific year. This can result in essential differences, as illustrated by the education costs. The living income calculated from this data refers to the sampled districts only and are hence local/regional living income. The total education costs were US$ 1580 PPP per child or US$ 260 PPP/RH/year (Table 7). https://doi.org/10.1016/j.agsy.2015.07.005. Total annual housing costs were estimated at US$ PPP 1541 (Table 5). Still unsure of where to start? Shelter. Paris: OECD. Report of a joint FAO/WHO/UNU Expert consultation, Rome, 1724 October 2001. Living wage report Kenya with a focus on rural Mount Kenya area. The toilet/bathroom and kitchen may be outside the housing unit. This makes it difficult to deploy quickly as a benchmark for rural developments projects and industries. https://doi.org/10.1007/s12571-017-0720-0. We help people forge the first connections so that they can shift from subsistence to sustainability from reliance on others toresilience. 2011). 2b the share of different cost categories (food, housing, NFNH, and unforeseen) in the total living income following our methodology was within the range found for the countries assessed by the Anker Methodology, but the share of the food costs was at the lower end. Rome: FAO. Living wage for Kenya with focus on fresh flower farm area near Lake Naivasha. 2017) are extended to include data that enable i) calculation of the living income at the local level, better reflecting a poverty threshold than a worldwide international benchmark and ii) assessment of households against the living income. In any given location this requires about one week of fieldwork. Basic health care insurance is available for all villagers through the Community Health Fund (CHF). The living income for rural households in Lushoto District, in the West Usambara Mountains of Tanga region, northern Tanzania, was estimated based on secondary data and primary data collected through key informant interviews in Lushoto (district capital) and the villages Kongei, Migambo and Mshizii. Policy Research Working Paper 7606 (pp. Accessed 20 Jul 2018. A graphical user interface for calculating the Living Income is available at a model portal (https://models.pps.wur.nl). Living income - Heifer Article The Anker methodology is now widely accepted as the gold standard for measuring living wages and living incomes and it has played an important role in catalyzing wage and income improvement in global supply chains. The national poverty line was US$ PPP 1.47 per adult equivalent per dayFootnote 1 in 2011, excluding budget for housing and clothing national (National Bureau of Statistics Tanzania 2015). https://doi.org/10.1007/s12571-015-0480-7. United Nations, Department of Economic and Social Affairs, & Population Division (2017). If there are multiple benchmarks, which is the most recent? The study outlines a roadmap to achieve living incomes for cocoa farmers through a credible, third party analysis. 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. Smith, S., Anker, M., & Anker, R. (2017). 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. De Jager, I., Abizari, A.-R., Douma, J. C., Giller, K. E., & Brouwer, I. D. (2017). This could argue for a living income lowered with the value of home-produced food. (23 pp) Oxford, OXFAM GB. 36): Washington DC: World Bank. Living income benchmarking of rural households in low-income countries (2011) Global food losses and food waste. Basic health care insurance was not available in rural Uganda. Washington DC: National Academy Press. 2011). Collaborate with partners to access relevant living income benchmarks and pool financial resources to commission new benchmarks. As food comprises some 50% of the living income in low-income countries, the national and regional living income may very well differ (Appleton 2003). In our search for a simple and rapid benchmark for a living income in rural areas we therefore focus on the local monetary value a household would need for a decent living to meet the basic human rights, irrespective of its physical form (food, labour or money). 100 % of our cocoa farmed under the terms of the Nestl Cocoa Plan by 2025 17144 people registered to receive mobile payments through the income accelerator program Empowering farmers and their communities Appleton, S. (2003). Due to the oversupply at harvest time, prices in that period are low. It can be used in regional development schemes both by policy makers and researchers to provide context for their plans. Key informant interviews were held with six health care workers from two dispensaries and one missionary health care facility, and with one pharmacist. The expression per worker needs the number of people in the household actually working, which is very difficult to assess and fluid in a rural setting with seasonal work on- and off-farm in contrast to a commodity production setting which was the basis for the living wage definition. Two excel sheets were developed to calculate i) the household energy needs based on age, sex, body size and physical activity and ii) a low cost diet in an iterative procedure, going from current or expensive (nutritionist diet) to low cost, covering 20 foods and 11 food groups (Anker and Anker 2017b). Information should be collected on 1) total costs of constructing the house including all materials and labour and the expected service life, 2) annual utility costs, including water, electricity, cooking fuel, heat, and lighting, 3) annual costs for routine maintenance and repairs, and 4) annual costs for taxes, levies, fees and house insurance. These questions link to the Living Income Survey, which includes specific local data collection guidelines, and the Living Income Diet Tool, which calculates a low-cost nutritious diet using linear programming. Purchasing power parities and the real size of world economies: a comprehensive report of the 2011 international comparison program (p. 328). Given the debates on living wage and living income and the lack of scientific literature concerning these concepts, we chose to build on the Anker Methodology, which is the most concrete and practical approach currently available. Construction costs are divided over the expected service life. In Toronto, the median income for individuals in 2020 was $39,200, and across the province, it was $41,200, according to the 2021 census. https://doi.org/10.4337/9781786431462. This is probably due our procedure of minimizing the cost of a nutritious diet, instead of considering only commonly purchased foods. The living wage or living income differs from the poverty lines both conceptually and methodologically. In rural areas in low-income countries often complex socio-economic relations prevail. This is examined in the interviews and focus group discussions and costs can be adapted based on real data if needed. We assumed that public schools provide education of sufficient quality. The three most important health care service types were: (i) doctor consultation at apublic health care centre, (ii) medicine from apharmacy, and (iii) laboratory self-test for malaria. Which products and sourcing areas are most at risk of large income gaps? (pp. Huetz-Adams, F., Laven, A., Bymollt, R., & Tyszler, M. (2017). 2016; World Bank 2015a). Reference household (RH) size and composition in Lushoto District were obtained from the Rural Household Multiple Indicator Survey database (RHoMIS) for 2015 (Hammond et al. This is in line with our findings that interviewees rarely incurred costs for all of the items listed. The extreme poverty line is the most commonly used benchmark for poverty, set at US$ 1.90 by the World Bank. We adapted the living wage methodology of (Anker and Anker 2017b) and present a Living Income Methodology for rural households. The national population and housing census 2014 - Main report. PLoS One, 12(4), e0175554. Based on their review, Croes and Vermeulen (2016) conclude that no agreed international system or standard is available for determining a fair minimum wage. 61): https://www.globallivingwage.org/living-wage-benchmarks/ghana/ Global Living Wage Coalition. Identify and assess adverse impact and estimate the wage and income gaps within your operations and supply chains. If insurance is not available, or only partly, an extra assessment is needed to estimate expenses for health care not covered by insurance. This analysis also shows that one general poverty line (US$ 3.20 per capita per day) or international poverty line (US$ 1.90 per capita per day) does not adequately reflect the basic rural human needs in different regions. Tanzania - National panel survey 20122013, wave 3. ESAP/WP/248. Update releases will be more predictable, benefitting all who use our values; Updated estimates will be more comparable, as they will all be updated to the same time period and; Updated estimates will represent the average living wage and living income for the year (e.g., for 2022, 2023, and so forth). We grow incomes. In case of strong fluctuations throughout the year (>25%) the most common prices (throughout the year) are also collected from the same vendor locations and used in the calculations. Google Scholar. And its at the very center of our community developmentapproach. We express it per adult equivalent per day (AE/day). Washington DC: World Bank. 70): Fairtrade International, Sustainable Agriculture Network, Rainforest Alliance, UTZ Certified. Article Mellisse, B. T., van de Ven, G. W. J., Giller, K. E., & Descheemaeker, K. (2017). Find company research, competitor information, contact details & financial data for ETAB.REGIONAL ENSEIGNT ADAPTE COLETTE MAGNY of LYS LEZ LANNOY, HAUTS DE FRANCE. We set a 10% margin above the basic costs of a nutritious diet to allow modification of the diet to respect individual preferences. (pp. 2. This example underlines the importance of a decent living as a basis for assessing living income and to avoid current expenditures wherever possible. (2018). Report 8. The required number of informants depends on local circumstances, but a minimum of three cross-checks per cost item is recommended. ), (pp. Benchmarks are produced by multiple organizations and vary in their geographical specificity. When calculating the living income gap, the two main data points are household actual income and the living income benchmark. Dikhanov, Y., Hamadeh, N., Vigil-Oliver, W., Degefu, T. B., & Song, I. What the Cte d'Ivoire-Ghana cocoa living income differential might deliver on its promise OleBoysenab EmanueleFerraria VictorNechifora PascalTilliea (PDF) Analysis of the income gap of cocoa producing - ResearchGate The most common prices throughout the year were used for tomato, carrot, cabbage, avocado, banana, chicken eggs, duck eggs, cocoyam, because their current price differed >25% (50% to +67%) from the most common price throughout the year. Report 9. 10. (2017). A minimum wage is more of a political instrument, based on the prevailing economic situation in a country at national scale. The Living Income Tool assists in collecting the required data by using clear and explicit guidelines, questions and formats. Find company research, competitor information, contact details & financial data for VIGIN ALEXANDRE of LYS LEZ LANNOY, HAUTS DE FRANCE. When we start working with a community, together, we set a living income benchmark using existing data and data we gather from households in our project areas. Having said that, if a generally applicable benchmark is required, the poverty line is more realistic than the international or extreme poverty line, also for rural areas in low-income countries. The Quarterly Journal of Economics, 125(4), 15771625. Income Measurement Survey The Living Wage Benchmark uses the cost of living, but also accounts for contributions of other wage earners, as well as taxes and deductions. 23). 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). 201; World Bank 2015a) the poverty line of US$ 1.90 (PPP 2011) seems to be a robust benchmark for low-income countries (Jolliffe and Prydz 2016). Global trends in dietary micronutrient supplies and estimated prevalence of inadequate intakes. Food compostion table for use in Ethiopia , Part IV. https://doi.org/10.1007/s11367-015-1017-1. The food costs are the sum of costs for a low-cost nutritious diet plus miscellaneous food costs. PDF Fairtrade Living Income Reference Price model Living wage report for rural Brazail, Minas Gerais south/Southwestern region with focus on the coffee sector for context. The Anker Methodology calculates the NFNH from secondary data on the ratio of NFNH:food costs multiplied by the costs of the living wage model diet. This means that in Lushoto US$ 1.21/AE is equivalent to the extreme poverty line (Table 8). (2018). local education experts and parents/caretakers of school children. Anker Sub-National Estimates With increased productivity of livestock and crops, farmers provide for their families and improve the health of theircommunities. In rural Tanzania the living income in 2017 of US$ 4.04 was more than double the national poverty line of US$ 1.60 PPP/AE/day (National Bureau of Statistics Tanzania 2015). Similar to Anker and Anker (2017b) we set this at 2%. The three most common diseases treated were typhoid fever, diarrheal diseases and malaria. Beltsville: Beltsville Human Nutrition Research Centre. 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). 13, 729749 (2021). Food Security, 9(5), 10531071. Hotz, C., & Brown, K. H. (2004). In reality people buy and consume more different foods. Information on costs is ideally gathered from secondary data and key informant interviews and/or focus group discussions with e.g. Income distribution in OECD countries. Prioritize and identify where is most important for you to focus your efforts first. 60). The difference between US$ 1.47 PPP in 2011 and 1.60 in 2017 is only 9% over 6years. However, our local benchmark serves a different purpose than a (national) living income benchmark for commodities. The first step to addressing living income in your supply chain is to create internal alignment and identify your regions of interest to prioritize where to find living income benchmarks. 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). We assume that foods are distributed among household members according to their needs. Living wages and living incomes are needed to ensure decent work and decent living standards for workers. https://doi.org/10.1007/s12571-020-01099-8, DOI: https://doi.org/10.1007/s12571-020-01099-8. The costs for non-food items in the national poverty line are based on the current food cost of the poorest 25% of the population and no allowance for clothing and housing rent are included. We are unsure how this compares with minimum costs, and with other regions, so this may need further investigation. Policy Research Report. If a benchmark does not exist in your priority area, use an alternative benchmark or commission a benchmark study to create one. It ensures that meeting all dietary requirements for energy, carbohydrates, protein, fat, and a selection of micronutrients, based on the most common deficiencies in low-income countries (Beal et al. 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. (pp. More specifically, a living wage benchmark is a target wage level for a particular place that reflects both the cost of a decent standard of living in that place and our expectations about how much the wage received by one worker can reasonably be expected to contribute to supporting a decent standard of living for an average family. In Sidama Zone, Ethiopia both the absolute and the relative expenses for a nutritious diet are higher and those for housing are lower than in both other locations. What are the annual housing costs for a house that complies with these local minimum standards for decent housing? SDG 2 addresses zero hunger and sustainable food systems (United Nations General Assembly 2015). In this article we propose a simple method that can be used in all types of development projects to benchmark a rural living income. The three case studies showed that in 2017 in Lushoto District, rural Tanzania, the living income is US$ PPP 4.04 AE/day, in Isingiro District, rural Uganda, it is 3.82 and in Sidama Zone, rural Ethiopia, it is 3.60. The living income is determined for rural households in a specific area and moment in time, allowing for adjustments for inflation over time (Anker and Anker 2017b). Nutritious food. And a safe and secure environment. International Labour Review, 145(4), 309338. This clearly demonstrates that an income around the extreme poverty line of US$ PPP 1.90, although this is per capita, is insufficient to meet the basic human rights for a decent living. Trang, S., & Binh, T. (2017). (pp. Taxes, levies and house insurance costs were not common in Lushoto District. However, the margins in supply chains from farmers to retailers are unevenly distributed, with farmers least represented. 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. The total living income includes the sum of estimated costs for food, housing and NFNH per reference household, plus a margin for Unforeseen Events estimated at 10% of the total living income budget. Uganda is among the countries with the highest growth in GDP among countries in SSA world (World Bank 2016). However, Dikhanov et al. New York: United Nations. 43): Global Living Wage Coalition. Understanding farm trajectories and development pathways: Two decades of change in southern Mali. 2). Our methodology is no exception to this, and being a rapid assessment, this requires careful attention. Housing costs (key informants, focus group discussion, secondary reports). (2007). The expected service life of housing without major investments in repairs was about 30years instead of 50. The Food Lab, GIZ and ISEAL are co-hosting a series of learning events to better explore two connected themes on living income. What rental can the average worker afford in Toronto? | The Star (pp. Estimated living income (a) and the relative contribution of cost items to the total living income (b) of rural areas in Tanzania (Lushoto District), Uganda (Isingiro District) and Ethiopia (Sidama zone) using the Living Income Methodology explained in this paper, and of 10 living income studies prepared for the Global Living Wage Coalition (GLWC) using the Anker Methodology in rural areas of Brazil (De Freitas Barbosa et al. For all selected foods, current prices (atthe moment of collection) are collected from 5 to 10 different vendor locations, depending on the price variability. Indicators from household surveys. The costs were estimated in a focus group discussion with parents and amounted to US$ 310 PPP/RH/year (Table 7). PubMed Central 159). For companies, this can include the C-Suite, sustainability, procurement, marketing, sales and communications teams. A new methodology and international comparable estimates. Resolution 2017 A (III) of December 1948 (pp. Methods, such as the Anker Methodology, calculate the benchmark by evaluating the costs of decent housing, food, other essential needs, and a margin for unexpected events for a . Jolly, R. (1976). The living income benchmark will help you calculate the living income gap, and understand how much more the average farming household needs to receive to earn a living income. Results of the Living Income Diet Tool show that the minimum costs for a nutritious diet were 1.29 US$ PPP/AME/day or 1920 US$ PPP/RH/year. This also serves as a moderate poverty line for low-income countries (Jolliffe and Prydz 2016). Your browser is too old to optimally experience this website. However, if not corrected for inflation and exchange rates large fluctuations over time may occur especially in economically unstable, low-income countries. (pp. Coalition (Ed. World Bank (2018a). Find company research, competitor information, contact details & financial data for THERY of LYS LEZ LANNOY, HAUTS DE FRANCE. Local education and health care are the responsibility of local/national governments. (pp. In general, collection of reliable data is the Achilles heel of any survey-based method which means that careful triangulation with different sources is needed. For instance, selecting the most commonly bought foods as in the Anker Methodology, or using current education expenditure does not necessarily allow calculation of the cost of a nutritious diet, or of the real cost of education to secondary level. Kennedy, G., Ballard, T., & Dop, M. (2010). The population density in rural Wondo Genet and Melga districts in Sidama zone in southern Ethiopia exceeds 1000 person per km2 and the average farm size per household is less than 1ha (Mellisse et al. Heifer International is a 501(c)(3) nonprofit charity registered in the US under EIN: 35-1019477. Although Grillo (2018) suggested the benchmark should be adjusted to (extended) household size if contextually necessary, this still does not make it applicable to individual households. Uganda Sustainable Living Incomes | SHIFT Social Impact Solutions Charitable Solicitation Disclosure Statements. If we express the living income in the local US$, the living income per AE is US$ 1.51 in Lushoto, Tanzania, US$ 1.31 in Isingiro, Uganda and US$ 1.54 in Sidama, Ethiopia. Living wage report for rural Vietnam: Context provide in the seafood processing industry. It is for this reason that such farmers earn a paltry Kshs 10,000 per year against their living income of Kshs 150,000 and ultimately, poverty becomes a norm. Access to health care. What are the two cheapest foods and the one most consumed food for each of the 13 food (sub)groups, available at vendor locations where rural households commonly shop for cheap foods? Ethiopia, Tanzania and Uganda, are classified as low-income countries and were part of the 15 countries included in the assessment of the extreme poverty line of US $ 1.90 in 2011 (Chen and Ravallion 2010; World Bank 2015b). National population and housing census 2014 - Provisional results. Other sources often contribute to household income, such as petty trade, off-farm wages, either in- or outside agriculture, and remittances from family members working in cities or abroad. Working paper no. A living wage is the wage keeping a worker and his family out of poverty. The PPP covers a correction for relative price developments and exchange rates (World Bank 2015b). Key informant interviews were performed with parents of children in public primary school (n=13), and lower secondary school (n=10) The household out-of-pocket expenses per child per year were reported. The Anker Methodology refers to the nuclear family if possible (Anker and Anker 2017b). 15). From living wage to living income. uniform, registration and security fee) and saved on optional items such as books. Learn more about Environmental Sustainability. The world employment conference: The enthronement of basic needs. The model behaves as expected and intended (OnlineResource 3). Infrastructure and remoteness of rural areas are important factors for market access and as such for local food prices (Mellisse et al. Please enable Javascript in your browser. 160). For the living wage also the number of full time labourers is required, which is generally based on statistics on labour force participation rates, unemployment rates and age. In Ethiopia primary school takes six years and secondary school four years and no school fees are paid. The living income for all three cases was compared with ten other living income benchmarks for rural areas assessed by the Global Living Wage Coalition (GLWC) using the Anker Methodology (Fig. In most countries education is compulsory starting at the age of 5 to 7 until the age of 11 to 18years, roughly covering primary and lower secondary school (UNESCO 2000). 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/. Estimating international poverty lines from comparable national thresholds. In addition, the composition of diets is sometimes questionable from a consumption perspective, e.g. ILO declaration on social justice for a fair globalization (p. 25). For lower-middle income countries the poverty line is set at US$ 3.20 (experessed inPPP 2011). From the survey the average household composition is calculated and converted to AME and AE by using the equivalence factors. Anker, R., & Anker, M. (2014b). Living Income | Heifer International FAO (2018). For governments, this can include bodies in charge of the sector as well as all relevant ministries of trade, agriculture, environment, natural resources, gender, technology, foreign services and beyond. UNESCO (2000). Geneva, Switzerland. It can be used to reflect on progress of rural households in low-income countries on their aspired path out of poverty. Approaches to assessing actual farm and household incomes, and modeling the impact of different interventions. We do not evaluate the diet itself. They are easy to use and results are immediately calculated. https://www.globallivingwage.org/living-wage-benchmarks/rural-pakistan/: https://www.globallivingwage.org/living-wage-benchmarks/ghana/. In International congress SAVE FOOD!, Dusseldorf, Germany, 2011 (pp. The minimum cost diet covering the nutritional requirements, as calculated with the Living Income Diet Tool, contains a limited set of foods, does not consider portion size as a limit to the consumption a single food, and it assumes people eat this same diet every day.

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