The Cost of Living Among Wage-Earners: Fall River, Massachusetts, October, 1919, Research Report Number 22, November, 1919

Key themes

Cost of Living and Wage Adequacy

The central theme is the detailed quantification of the expenses required for a working-class family to maintain a 'fair standard of living.' The report meticulously breaks down these costs, implicitly raising questions about whether prevailing wages were sufficient to meet these basic needs. It provides the empirical data necessary to assess the adequacy of wages in relation to essential expenditures.

Industrial Relations and Social Welfare

The report emerged from a period of significant industrial unrest and labor disputes, particularly in the aftermath of World War I. By providing 'objective' data on the cost of living, it aimed to inform discussions and negotiations between employers and employees. It implicitly addresses concerns about social welfare by documenting the economic conditions that could lead to poverty or social instability, thereby serving as a basis for policy recommendations or union demands.

Methodology and Data Collection

A significant aspect of the report is its detailed explanation of the methodology used to collect and analyze the cost-of-living data. This includes identifying sources for price information, categorizing expenditures, and making assumptions about family size and consumption patterns. The report itself is a testament to the early development of social scientific research methods in economics, aiming for empirical rigor and objectivity in an era where such studies were becoming increasingly important for public policy and business decisions.

Worth discussing

How does the methodology employed by the National Industrial Conference Board in 1919 compare to modern approaches to calculating the cost of living or inflation?