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How much does it cost to just get by in your community?
Many workers in low-wage jobs do not earn enough to meet their basic needs in the community in which they live. Researchers at MIT developed the Living Wage Calculator using current data and covering modern-day expenses, to provide communities with an understanding of how much it costs a full-time worker to meet their basic needs. The living wage is the minimum threshold needed to maintain economic self-sufficiency without the use of public assistance programs and without facing severe housing or food insecurity.
Update: A new tool to help Kentuckians understand benefits cliffs
As the costs of basic needs have skyrocketed during this period of rapid inflation, it is worth revisiting the impact of cliff effects on workers in low-wage jobs. The Kentucky Center for Statistics has revamped its Family Resource Simulator, making it easier to use and ensuring it will stay updated and relevant in a changing economy.
A new tool to help Kentuckians understand benefits cliffs
Workers in low-wage jobs often do not earn enough to make ends meet. As a result, many workers in low-wage jobs rely on work supports to help them cover the costs of living, such as food, stable housing, healthcare, and childcare. Low-wage workers face trade-offs as they pursue career advancement, because earning more in income can mean losing access to work supports. A new tool shows the net result workers face when they earn more but become ineligible for public assistance programs in the process. These cliff effects might prevent workers in low-wage jobs from taking advantage of career advancement because of a very rational decision- they would ultimately have fewer resources to provide for their family.