Toward the Pursuit of What People Value: Determining a Living Wage Based on Capability Gaps
Document Type
Article
Publication Date
2021
Abstract
This study sought to initiate conversations on the utility of the capability approach and a psychological lens in approximating a living wage. We put forth the concept of capability gap – defined as the difference between what one values and what one perceives as attainable. We used a set of valued domains of a good life that were identified based on well-being indicators in determining capability gaps. Five hundred workers (all breadwinners) belonging to households selected through stratified random sampling from purposively chosen middle- and low income communities in the Philippines participated in the survey. From the data; we constructed a weighted capability measure that determinesthe capability gap; weighted by the perceived importance of each of the good life domains. We likewise derived an estimate of a living wage that yields a weighted capability that represents individuals’ capabilities to achieve and pursue valued outcomes; freedoms; and entitlements. This initial attempt at estimating a living wage based on individuals’ capability to achieve and pursue a good life is presented as the main contribution of the research. The limitations of the study as well as its implications to living wage research and policy are discussed.
Recommended Citation
Teng-Calleja, M., R. Clemente, J. A., Menguito, M. L., & Bertulfo, D. J. (2021). Toward the pursuit of what people value: Determining a living wage based on capability gaps. International Perspectives in Psychology: Research, Practice, Consultation, 10(2), 59–73. https://doi.org/10.1027/2157-3891/a000007
