Economics · Labour Economics
Which of the following best describes the core conceptual difference between a Minimum Wage and a Living Wage?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Minimum wage ensures a worker's right to leisure and luxury, while living wage ensures basic access to state pensions.
- 2Minimum wage is a legal mandate applicable only to industrial workers, while living wage is strictly voluntary for all sectors.
- 3Minimum wage primarily guarantees a subsistence-level baseline, while a living wage ensures a decent standard of living, including adequate food, housing, healthcare, and education.✓
- 4Minimum wage is linked directly to hourly industrial productivity, while living wage is a fixed universal value set globally by the International Labour Organization (ILO).
Correct answer
Minimum wage primarily guarantees a subsistence-level baseline, while a living wage ensures a decent standard of living, including adequate food, housing, healthcare, and education.
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