What is the 'MIT living wage calculation method' that can calculate the sufficient living wage that IKEA plans to introduce?
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Although the minimum wage is set by law in many countries, the living wage required varies depending on the price of the place of living and the person, and sometimes the legal minimum wage increases the poverty rate. The 'MIT Living Wage Calculation Method ' has been developed, which can calculate the living wage required for each such person or household. Starting in 2015, IKEA plans to introduce a new wage system with this tool, which will increase the minimum wage for thousands of employees working at IKEA in the United States.
Meet the woman behind Ikea's living wage calculator --Marketplace
https://www.marketplace.org/2014/08/06/meet-woman-behind-ikeas-living-wage-calculator/
In 2015, IKEA announced that it plans to adopt a new wage system at its stores in the United States. The average minimum hourly wage for IKEA employees is $ 10.76, an increase of 17% over before. The minimum wage uses the 'MIT living wage calculation method,' which is a tool of MIT's professor's research project, and affects thousands of Americans.
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This calculation method is based on the idea of Professor Amy Grasmeyer of the Faculty of Economic Geography and Regional Planning at MIT. When she traveled as a hobby, she was investigating the pricing of local grocery stores and apartments and found that certain locations had high poverty rates. And from the survey results, it was found that there are many jobs with the minimum wage stipulated by state law in areas with high poverty rates. 'It wasn't enough for people to live,' says Professor Grasmeyer.
◆ What is the MIT living wage calculation method?
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Professor Grasmeyer selects excellent graduate students and creates a huge spreadsheet to determine the cost required for each place of living. The sheet lists costs such as housing, food, childcare, medical care, and transportation, using the most effective regional data from government and industrial statistics. Next, by dividing the total of the calculated costs by the number of hours one person works in a year and converting it into an hourly wage, the minimum wage required for each person can be accurately grasped, and adjustment by the number of families is also possible. increase.
According to Professor Grasmeyer, the minimum wage calculated by this calculation method is calculated as an amount that can sufficiently obtain daily necessities, and since it is not modeled on the 'middle class', it travels to Hawaii once a year. It is said that such costs are not included.
By liz west
Since the invention of this calculation method, there has been a quiet response from multiple organizations, including policy makers, labor unions, and small business owners, but IKEA is considering introducing a wage system using this calculation method. It was widely reported that it became well known. Rob Olson, president of IKEA in the United States, said, 'We believe that the MIT living wage calculation method can properly care for employees. By paying a fair minimum wage, employees can be motivated. It will be an opportunity to increase sales. '
From January 2015, when the calculation method is scheduled to be introduced, the minimum wage of IKEA employees working in Washington DC, where prices are high, will be $ 13.22 (about 1350 yen), and living expenses will be relatively low. In Pittsburgh, it will be $ 8.29, which is about $ 1 more than the state law minimum wage. However, since the current calculation method is based on the data from 2010 to 2012, Professor Grasmeyer told IKEA, 'The latest version considering price increases will be released around September 2014. '.
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