The minimum wage is a legal floor. A living wage is a measure of what life actually costs. Researchers estimate it by adding up local prices for basic needs. The best-known tool is the MIT Living Wage Calculator, created by Professor Amy Glasmeier, which estimates living wages for every US county and for different family sizes.
The federal minimum wage rose to $7.25 in July 2009 and has not changed since. Inflation has eroded its value every year. Many states and cities have set higher minimums, but millions of workers still earn less than it takes to support a family.
The gap has a racial history. The Fair Labor Standards Act of 1938 excluded farm workers and domestic workers, jobs held by a large share of Black workers in the South at the time. Domestic workers were not covered until 1974. Today, Black and Latino workers remain overrepresented in low-wage jobs, so raising pay to a living wage would narrow racial income gaps.