How is the term "living wage" best defined?

The term "living wage" is best defined as a wage that is sufficient to meet basic living standards in a specific area. This concept is rooted in the idea that individuals should earn enough income to cover essential expenses such as housing, food, healthcare, and other necessities, thereby enabling them to live with dignity and stability. Unlike the minimum wage, which may not always align with the actual costs of living, a living wage takes into account local economic conditions, including the cost of living in different regions.

This definition underscores the importance of ensuring that workers are compensated adequately to support themselves and their families without relying on public assistance or facing financial hardship. The living wage can vary significantly from one geographical area to another, reflecting the diverse economic realities across different communities.