What wages are
required for a family
to meet basic needs?
Prepared by Art
Schneider
Human Development/Family Studies Specialist
University of Missouri Extension
Six charts taking into account basic wage needs of one adult and two adult households follow the discussion at the beginning of this page. The first three charts are for single adult households and the last three charts are for two-adult households.
In 2000, the Missouri Department of Economic
Development and Planning developed a Self-Sufficiency Standard for each of
Missouri's 114 counties and the City of St. Louis for the Missouri Women's
Council. The charts below are based upon its June 2000 Report, which can be
downloaded from the web in Acrobat Reader at
http://www.womenscouncil.org/publications2.html
The methodology was developed by Diana M. Pearce of Wider Opportunities for Women Inc. It differs from the poverty measure because:
It assumes all adults in the household
work and therefore child care and transportation must be considered.
It recognizes that child care costs vary depending on the age
of the child.
It incorporates regional differences.
The cost of taxes is included in the model.
The following facts are considered in the model:
Housing Costs: Housing uses the Fair Market Rent calculated by H.U.D. that includes rent and all utilities except phone. Each county's 40th percentile is used--the dollar amount below which 40% of standard housing units rent. Single adults and couples are assumed to have one bedroom. An additional bedroom is assumed for each additional two children.
Child Care Costs: Child Care costs are based upon the Child Care Market Costs Study commissioned by the Department of Social Services in June1999. Metro County costs--which include Boone County in Central Missouri-- are in one classification. All other counties in Central Missouri are classified as Rural. Costs are given by three age groups: Infants (under age 2); Preschool (age 2 to 5); and Children over age 5 (School Aged). Children age 11 and older are classified at Teenager. The mean costs assumed. These are an average of licensed home and center based care. So home based will cost slightly less and center based slightly more.
Food Costs: The U.S. Department of Agriculture Low Cost food plan is used because it provides better nutrition than the thrifty plan. For single adult households the plan assumes a female age 20 to 50. Expenses would be higher for single male. One teenager is assumed to be male. If two teens one is assumed male and one female. Food costs under age 12 are assumed the same for each gender.
Transportation Costs: This assumes the adults drive to work and have a mid-size car. For single adults it assumes 10,000n miles a year. For two adults 20,000 miles a year.
Medical Costs: It assumes employer health care with co-pay by employee.
Clothing and Related Costs: This is assumed to be 10% of all costs.
Taxes: Tax credits, such as the Earned Income Tax Credit, are not considered.
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University of Missouri Extension Boone County
booneco@missouri.edu Updated 06/30/08 |
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