MIT Living Wage Calculator

Original Article ↗ Hacker News Discussion ↗

Scope, Coverage, and Granularity

  • Tool is US‑only; some argue foreign comparisons (e.g., Norway) are irrelevant, others use them to highlight US policy gaps (social benefits, vacations, safety net).
  • Geographic resolution is often too coarse: counties/MSAs group cheap and expensive areas; 15–20 miles can mean big COL differences.

Methodology and Core Assumptions

  • Based on 2080 working hours/year (52×40); several commenters note this ignores realistic vacation/sick time and is “inhuman” compared to European norms.
  • Calculator targets “bare-bones but not destitute” budgets: housing, food, childcare, transport, healthcare, taxes, some “civic engagement,” not retirement, emergency savings, or homeownership.
  • It generally ignores means‑tested transfers (SNAP, tax credits, subsidies), which some say overstates required wages; others reply those benefits phase out around these levels, so wage-based self‑sufficiency is the point.

What Counts as a “Living Wage”?

  • Major conceptual split:
    • One side: “living wage” = dignified, independent life (own small apartment, reliable transport, room to save, no roommates required).
    • Other side: “living wage” here is closer to “minimum to get by”: roommates, strict budgets, no vacations, limited resilience to shocks.
  • Recurring argument over whether roommates/car‑free lifestyles are acceptable baselines vs markers of poverty.

Cost Line Items: Accuracy Disputes

  • Housing: many say figures are stale or far too low in high‑cost markets (e.g., studios/1BRs well above implied rent, childcare and health insurance also understated in some metros).
  • Transportation: $9–10k/yr per adult seen as inflated in rural/low‑income contexts if you drive old cars or use motorcycles; others note this aligns with typical US car ownership costs and miles driven.
  • Food: some claim they can eat well well below the estimates; others find the USDA‑based food budgets already quite lean.
  • Childcare: often appears too low in big cities; explanation is that county‑level averaging dilutes core‑urban costs.

Household Composition Oddities

  • Confusion over why 1‑adult vs 2‑adult households with the same kids have different required wages.
  • Clarified by breakdowns: a non‑working adult reduces paid childcare to near zero and married couples get lower effective tax rates, so hourly “living wage” per worker can fall.

Structural and Political Themes

  • Several tie the wage–cost gap to rent‑seeking (housing, healthcare, education), zoning limits on housing supply, and weak worker bargaining power.
  • Debate over whether living wages should be enforced via employers (minimums) vs government transfers, and whether current US policy choices (no mandated paid vacation, limited safety net) make true “living wages” unusually high.