What is the difference between a minimum wage and a living wage?

A minimum wage is a legally mandated wage that must be paid to employees. The federal minimum wage is currently set at $7.25 per hour, while the state of Illinois has a minimum wage of $9.25 per hour. A living wage, on the other hand, is a wage that is higher than the minimum wage and is meant to meet the basic needs of workers. In Illinois, the living wage is estimated to be $13.69 per hour for one adult with no children. The main difference between a minimum wage and a living wage is that a minimum wage is required by law, while a living wage is not. The minimum wage is intended to provide a basic standard of living, but it may not be enough for employees to meet their basic needs. Therefore, employers may choose to pay their employees a living wage, which is higher than the minimum wage and is intended to provide employees with an adequate standard of living. In addition, living wages are often determined by local governments or other groups based on the cost of living in the area, whereas the minimum wage is set by the federal or state government. This means that a living wage may vary depending on the area, while the minimum wage is the same throughout the country and state. Overall, the difference between a minimum wage and a living wage is that a minimum wage is legally required and is set by the government, while a living wage is set by local governments or other groups and is intended to meet the basic needs of workers.

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What is the difference between a minimum wage and a living wage?

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