The Economics of Human Rights by Ruud Bronkhorst
Author:Ruud Bronkhorst
Language: eng
Format: epub
ISBN: 9783030591663
Publisher: Springer International Publishing
Head of the household
1
Number of wives per household
1.1
Number of children under age 18 per household
2.6
Number of children above age 18 per household
2.3
Number of additional other members per household
0.9
The total comes to 7.9 because of round-offs
Hence we may estimate the number of wage earners at 1 + 1,1 + 2.3 = 4.4,10 and the size of the household at 1+1.1+2.6/2+2.3+0.9 = 6.6.
By applying the Steele formula, we arrive at a minimum wage required per adult worker of 71,737 (rural poverty line) * 6.6 (size of the household) = 473,464 + 10% (extra expenses) = 520,810.62 FCFA. When we divide this amount by the number of adult income earners who have to earn this amount (4.4) we arrive at a Living Wage for each adult worker of 118,366 FCFA per year.
To arrive at the Living Income we can multiply the Living Wage (118,366) by the number of adult workers (4.4) and add a certain percentage for farm investments. When we take a percentage of 10%, this means that the Living Income will be (118,366 * 4.4) + 10% = 572,892 FCFA.
Schematically:
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