The living wage gap—a quantitative measure of poverty in global supply chains

A new paper in the International Journal of Life Cycle Assessment explores the definition of fairness and reviews recent developments for methods, data and models for the social life cycle assessment (S-LCA) fair salary subcategory indicator. The living wage gap (LWG) is proposed as a new indicator for quantifying poverty in global supply chains, with particular relevance to sustainable development goal (SDG) 1 no poverty.

Ethical theories and existing S-LCA fair salary methods are reviewed to define arguments and limitations for defining a fair salary. The LWG is then expressed as a S-LCA fair salary subcategory indicator following existing typologies. The computational structure of the LWG is defined using existing methods for the living wage, value added and the Leontief price model. A general modelling framework is developed to accommodate initiatives since the publication of the S-LCA methodological sheets and to discuss challenges and opportunities for implementation.

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