What is "MIT Living Wage Calculation Method" that allows IKEA to calculate sufficient living wages to be introduced?
In many countries the minimum wage is stipulated by law, but the prices of living places and the necessary living wages are different depending on the person, sometimes the legal minimum wage may increase the poverty rate. We can calculate necessary living wages for such people and families "MIT Living wage calculation method"Was developed. Since 2015 IKEA is planning to introduce a new wage system with this tool and the minimum wage of thousands of employees working in IKEA in the US will be up.
Meet the woman behind Ikea's living wage calculator | Marketplace.org
In 2015 IKEA announced that it intends to adopt a new wage system at American stores. The average minimum hourly wage of IKEA employees will be 10.76 dollars (about 1100 yen), an increase of 17% from the previous one. The minimum wage is used by MIT's research project tool "MIT Living Wage Calculation Method" and it affects thousands of Americans.
ByNoodles and Beef
This calculation method is based on the idea of Professor Amy Grasmayer of MIT economics geography / regional planning department. When she went on a trip as a hobby she studied the price setting of the grocery store and apartment in the area and found that high poverty rate occurred in a specific place. And from the survey results, it turned out that there are many jobs of the minimum wage prescribed by state law in areas with high poverty rate. Professor Grassmeyer says, "It was not enough money for people to live."
◆ What is MIT Living Wage Calculation Method?
Professor Glassmeier selects outstanding graduate students and creates huge spreadsheets in order to determine the cost required for each place of living. Costs such as housing, meals, childcare, medical expenses, transportation expenses, etc. are listed on the seat using the most effective regional data from the government and industrial statistics. By dividing the sum total of the calculated costs by one working hour per year and converting it to hourly wage, it is possible to accurately grasp the minimum wage necessary for each person and to adjust by the number of families I will.
According to Grassmayer Professor, the minimum wage calculated by this calculation method is calculated as the amount enough to obtain daily necessities, and since it is not modeled as "middle class", it is recommended that Hawaii travel once a year The cost is not included.
Since this invention was invented, there were quiet responses from several organizations, ranging from policymaking, labor unions and small business owners, but IKEA is considering introducing a wage system using this calculation method It was widely reported that it raised the name recognition a lot. Rob Olson, president of IKEA in the US said, "We believe that we can properly give attention to employees by way of MIT Life Wage Calculation Method. By paying legitimate minimum wages, we can motivate employees It will be an opportunity to increase sales, "he said.
From January 2015, scheduled to introduce a calculation method, the minimum wage per hour for IKEA employees working in Washington, DC, where prices are high, will be 13.22 dollars (about 1350 yen), which is relatively low living expenses In Pittsburgh it is going to be $ 8.29 (about 840 yen) and will be paid about 1 dollar (about 100 yen) more than the minimum wage set by state law. However, since the current calculation method is based on data from 2010 to 2012, Professor Grasmey informs IKEA that "We will release the latest version taking into account the rise in prices, etc. around September 2014 It is said.
in Note, Posted by darkhorse_log