Measuring the gap between actual pay and a living wage is a starting point. Understanding why that gap persists helps identify the decisions, relationships and investments needed to close it sustainably.
Karibuni’s approach examines wages alongside productivity, purchasing practices, access to finance, infrastructure and labour institutions. It considers both how value is created and how it is distributed across businesses and supply chains.
From measurement to action
A living wage gap can reveal several interconnected challenges: limited skills, inadequate equipment, unreliable energy, costly credit, commercial pressures or unequal bargaining power. Addressing these challenges requires coordinated action by employers, buyers, financial institutions and public authorities, informed by workers’ experiences.
Productivity improvements can help sustain higher wages. Respect for workers’ rights remains a responsibility in its own right.
Building the tools for change
We work with companies, development agencies, institutions and supply chain partners to develop:
- Wage gap assessments — comparing actual remuneration with credible, locally relevant living wage benchmarks, using consistent definitions and reliable evidence.
- Analysis of underlying causes — examining productive capacity, costs, prices, margins, purchasing practices and wage-setting institutions to understand what sustains the gap.
- Worker participation — incorporating workers’ perspectives through meaningful consultation, with attention to confidentiality, vulnerable groups and protection against retaliation.
- Investment pathways — identifying combinations of training, technology, reliable energy, finance, logistics and responsible purchasing that can support better incomes.
- Implementation roadmaps — defining priorities, responsibilities, financing options and indicators to connect findings with practical action.
A methodology designed for learning and replication
Our proposed approach combines quantitative analysis, stakeholder consultation and an assessment of the wider production system. Pilot applications would test and refine the methodology before it is adapted to other sectors and locations.
The aim is to create shared knowledge infrastructure: diagnostic tools and decision frameworks that help organisations move from measuring wage gaps to addressing their causes. This work also supports the broader human rights due diligence approach described in our related area of work.