lowwage

Low wage is a term used to describe earnings that fall well below a country’s typical earnings level for full-time workers. It is a relative concept, varying by country, region, cost of living, and household size. In policy discussions, low-wage work is often contrasted with middle- or high-wage employment and with jobs that provide higher benefits or advancement potential.

Low-wage jobs are common in sectors such as retail, hospitality, food service, cleaning, and care services. They frequently involve part-time or temporary work and may offer limited or no paid leave, health insurance, or retirement benefits. Wage levels are affected by skills, education, experience, and local labor demand. In some economies, a substantial share of workers remain in low-wage positions despite full-time employment, contributing to income insecurity and poverty risk for households.

Consequences and policy context include potential contributions to poverty and higher reliance on social assistance, and may reflect disparities in productivity, bargaining power, or discrimination. Real wages adjust with inflation, so stagnant or falling real wages over time can erode living standards even for full-time workers.

Policy responses include minimum wage laws, living wage campaigns, wage subsidies such as earned income tax credits, and measures to strengthen collective bargaining. Critics argue that high minimum wages can reduce employment or raise costs; supporters say wage floors help reduce poverty and boost demand. Evidence on effects is mixed and often context-specific.

Terminology and measurement: Researchers sometimes define low-wage work as earnings below a fixed share of the median wage (for example two-thirds of the median). Other approaches compare wages to living standards or local costs of living. The term can also refer to a broader class of low-paid workers who face limited job security and upward mobility.