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According to a recent study, less than 20% of local jobs could provide for a family of three. For those of us that are sole-providors who are feeding a wife and two kids, I'm sure that percentage is lower (as the study says that only 19% of jobs provide a living wage for a family of four -- if both parents work). To quote the article:

A Deschutes County family of three -- one working adult with two children -- must earn $23.14 an hour to meet basic needs, says the new report. A single worker requires at least $11.30 an hour to make a living in Deschutes County.
That's a hair over $48,000/year. I can tell you one thing without getting into how much I make: I'm not making that much money, I'm just really frugal. I am feeding my wife and two kids, paying my bills, student/home/car loans, with quite a bit less than that, but I'm surviving -- barely.

More commentary will undoubtedly appear at some point on the Bend Economy Blog (one of the best local blogs for this type of thing), but feel free to comment here.

Posted by Jake on 09/20/06 @ 10:17 AM
Posted in Local, Sad | 5 Comments | Permalink
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5 Comments

Incorrect... said on 09/20/06 @ 02:49 PM:
If a single person was to make $11.30 (gross) per hour that would leave that individual with a take home of $1,486.50 per month (their W-4 would be single with 1 allownace - right?) once taxes are taken out (that's just taxes). That comes to a $472.10 shortfall. According to the gross-up calculator http://www.paycheckcity.com/copaycycle/grossupcalculator.asp
if you need $1627.80 a month to live ($19,533.60 annually) you will need to make $12.47 an hour.

And remember that this 'living wage' is an average cost for Deschuttes County. My calculation for Bend's living wage (ave rent is $965 for 2005 from EDCO and then adjust the houshold and savings) is $16.73 per hour - and that is without any extra deductions such as 401k, etc... That comes to $34,799.83 gross a year...

I'm barely above that and I have a degree in Economics - go figure...

Incorrect... said on 09/20/06 @ 03:36 PM:
After looking at their calculation closer, it looks like they are using 'Head of Houshold' and 1 for the single calculation - that results in a $12.24 an hour living wage.

Jake said on 09/20/06 @ 03:41 PM:
OK, since you're the economist, what would the living wage be for a family of four -- husband and wife and two little girls -- with only a single income-provider in the household? Just curious how much I should be asking for next time I scream for a raise ;-)

Incorrect... said on 09/20/06 @ 04:01 PM:
I don't know if I could count that high...

Their information:
http://nwfco.org/pubs/2006.09_LW.in.econ.Deschutes.pdf


An easy guestimate would be the following equation:
$12.24 * (self + ((your spouse + #of children) * .5)) = living wage

Or, in your case, $30.60 an hour or $63,648.00 gross per year - remember that it does not include any voluntary deductions...

Good Luck!






Jake said on 09/20/06 @ 04:53 PM:
Yikes...I wish I was making that kind of money. Thanks for the info.

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