| TL;DR: The chart is a single-adult, renter affordability ratio (price ÷ typical net wage). It’s not saying “people actually work 11h/day”; it’s saying “if you tried to cover a solo renter basket out of one typical paycheck, you’d need ~X paid hours.” Households adapt (roommates, family pooling, informal housing, employer perks), which lowers real-world hours. Why the >220h outliers were excluded from the press note:
We used a trimmed summary to avoid letting a handful of fragile cases (thin/biased price data, capital-city rent proxies, wage series with poor coverage, currency quirks) dominate the headline. In the full write-up, I’ll show the entire distribution, the eight omitted cases, and winsorized vs. raw comparisons so readers can audit the effect. Where confounding can creep in (you called several): Informal economy: Formal price series + formal wages can overstate hours where many transact or earn informally. Housing formality: If rent stats miss informal dwellings, the “solo renter” basket skews too expensive vs. typical living arrangements. Basket design: Ours is a minimal, non-tradable basket (modest 1-BR rent, basic utilities, ~2,100–2,400 kcal groceries, local transit). No cars, no tuition, no luxury goods. I’ll add a shared-housing variant and a city vs. national sensitivity. Household composition: The metric is per worker, not per household. A 3-adult household sharing one rent bill will show fewer hours per person than a single renter. Net pay & transfers: We use net/typical pay (after taxes, including standard cash benefits where the source does). Publicly funded services (health care, schooling) are intentionally excluded from the out-of-pocket basket—this is a cash-flow lens, not a full welfare measure. Mexico/“11 hours a day” example:
That interpretation mixes hours of pay needed with hours actually worked. If the basket costs more than one typical monthly take-home, the ratio can exceed ~173–184 hours/month—even though people don’t work 11h/day; they share housing, live outside the cost center, buy informally, or pool incomes. What I’ll add to make this clearer (and falsifiable): A methods box with the exact basket, wage series, and the full, untrimmed table (including the eight outliers). Two companion views: Shared-housing hours and Discretionary hours = paid hours – hours to essentials. A city edition (e.g., SF/NYC/Lagos vs. national) so price-level heterogeneity isn’t hidden. Happy to be corrected—if you have a better wage or rent series for any of the questionable cases, point me to it and I’ll rerun that row and show the delta. |