What does this measure?

The level of income needed for households of different sizes and types in a region to be able to pay for necessities including housing and food without outside assistance.

Why is this important?

The level of income needed to afford basic expenses often exceeds the minimum wage, forcing the working poor to work multiple jobs or seek public assistance to make ends meet. Understanding the true level of income required to cover housing, food, clothing, child care, transportation and medical expenses provides a more accurate benchmark for assessing the jobs available in a region or local area. The living wage also adjusts for regional variation in costs.

How is the region performing?

In 2020, a living wage for two working parents with two children in the Mid-Hudson Valley would be $23.40, representing an annual income of just over $97,000. This was slightly higher than the state's living wage (excluding NYC) of $21.57. Within the region, the living wage would be substantially higher for a two-parent, two-child household in which only one parent works, at $33.76, and for a single working parent with two children, at $42.90. For two adults with no children, the living wage is far lower, at $12.65. These wages also were a bit higher than those at the state level (outside NYC).

The required living wage for all household types in the region increased since 2015. The rise was most pronounced for two working parents with two children (24%) and single parents of two children (23%).

Likely reflecting differences in the cost of living throughout the region, the estimated living wage for two working parents with two children was lowest in Greene ($20.77), Sullivan ($20.88) and Columbia counties ($21.70), and highest in Putnam ($28.69). The living wage was the same in Dutchess and Orange counties, at $24.15.

Notes about the data

Figures are in 2020 dollars and assume a 40-hour work week. The living wage model is an alternative measure of basic needs. It is a market-based approach that draws upon geographically specific expenditure data related to a family's likely minimum food, child care, health insurance, housing, transportation, and other basic necessities (e.g. clothing, personal care items, etc.) costs. More information on the sources of data for costs is available at Massachusetts Institute of Technology.