1984 - WHAT WAGE DO WE NEED TO FLOURISH? A 22-COUNTRY COMPARISON BASED ON GLOBAL FLOURISHING STUDY DATA

AUTHORS:
Mohamed Imaan (University of Cape Town ~ Cape Town ~ South Africa) , Meyer Ines (University of Cape Town ~ Cape Town ~ South Africa) , Teng-Calleja Mendiola ( Ateneo de Manila University ~ Manila ~ Philippines) , Carr Stuart (Massey University ~ Auckland ~ New Zealand) , Maleka Molefe (Tshwane University of Technology ~ Pretoria ~ South Africa)
Abstract text:
Through the concept of living wages, this presentation encourages work psychologist to engage in topics typically addressed by economists and to contribute towards improvements in societal level policies. The most common way for work psychologists to engage in determining wages is through job analysis and job evaluation. Both standardise how to determine adequate pay differentials and what these should look like. Actual wage amounts are allocated to these based on applicable wage legislation and industry benchmarks. Yet, such approaches overlook a central principle of paid work: money exchanged for work should enable individuals to sustain themselves and their families. The wage floor that ensures this is known as a living wage. Typically, a living wage is calculated as the cost of a basket of goods, which frames sustainability in terms of what goods an income can buy. A psychological approach to living wages allows a more direct way to assess sustainability. Studies with samples in New Zealand, South Africa and the Philippines have shown that it is possible to determine living wage amounts via subjective quality of life assessments which are plotted against individuals' pay. This study aims to test the applicability of this approach in large samples in various countries using open access data from Harvard University's Global Flourishing Program- first wave data of the five-year Global Flourishing Study (GFS), comprises quantitative, descriptive survey data collected in 22 countries in 2022/2023 (N > 200,000). Participants responded on six dimensions of flourishing (Happiness and Life Satisfaction, Mental and Physical Health, Meaning and Purpose, Character and Virtue, Close Social Relationships and Financial and Material Stability) and household income. We will present the relationships between income and flourishing across countries, establish similarities and differences and draw conclusions about the utility of this psychological approach to living wages in comparison to basket-of-goods methods.