standardized across all countries and set equal to an average household size of four with 1.5 full-time workers, following the extensive methodological review of Anker (2011).<sup>10</sup> This gives a wage threshold of US$5.07 (US$1.90 at 2011 PPP, multiplied by the ratio 4.0/1.5). If individuals are above this threshold, their labor earnings are sufficient to lift a family out of poverty, assuming other working household members contribute at least the same amounts.

Previous studies that measure job quality using microdata have proposed other income cutoff points. For example, Brummund, Mann, and Rodríguez-Castelán (2018) use as a threshold whether the job pays above the Latin America regional poverty line of US$2.50 a day (2005 PPP), while Ortega Díaz (2013) uses the minimum wage in Mexico, and neither considers any adjustment for dependents. Sehnbruch et al. (2020) choose a level of income that reflects minimum living standards defined by a vulnerability line of US$10 a day (2005 PPP) for a set of Latin American countries. They consider one dependent for each worker. Moreover, it has also been argued that a definition of a good job depends on a country’s level of development and that the income received should enable at least a middle-class lifestyle by the country’s standards (Rodrik 2019). Based on all these other options considered in the literature, this paper conducts sensitivity analysis with alternative income thresholds, dependency ratios, and other specification changes. The analysis shows that the main results are robust to these alternative specifications (see section 4).

Many surveys do not explicitly distinguish among income components, but instead report total labor income, including payments in kind. Given this and the fact that food payments in kind are the most common form of payment in kind, the income dimension includes not only wages, but also food payments in kind in the calculation of daily income if reported separately in a survey. To evaluate whether a job pays above the threshold, the income in local currency is adjusted to 2011 prices using the country-specific consumer price index values, and then the 2011 consumption-based PPP rate is applied (Ferreira et al. 2015).<sup>11</sup> _A job that pays above the threshold is counted as a success in the income dimension._ Converting labor income into a binary indicator leaves out valuable information regarding the quality of a job. However, the Alkire-Foster aggregation method followed in the analysis offers many desirable properties for the construction of an aggregate JQM, though it also requires binary indicators (Alkire and Foster 2011). However, collapsing labor incomes into binary indicators is widely used in the construction of JQMs (Brummund, Mann, and Rodríguez-Castelán 2018; González et al. 2021; Sehnbruch et al. 2020). The literature includes alternative composite indicators that are based on continuous indicators, such as the Human Development Index, which is constructed by the United Nations Development Programme as a geometric mean of three normalized continuous variables.<sup>12</sup> A potential area for future research would be the development of a JQM that exploits the continuous nature of labor income.

> 10 A household size greater than four may be more appropriate, especially in lower-income countries, where fertility rates tend to be higher. However, Anker (2011) mentions a few considerations. First, data on household size are often not available in labor force surveys, which usually exclude individuals outside the ages of 15–64. Second, using region- or country-specific estimates of completed family size can be complicated. For instance, observed average household size is affected by the distribution of household types and sizes. Single-person households would significantly reduce average household size even though this is unrelated to the typical household size of workers with children. 11 Consumer price index and PPP values are taken from WDI (World Development Indicators),World Bank, Washington, DC, https://datatopics.worldbank.org/world-development-indicators/.

> 12 HDI (Human Development Index) (dashboard), United Nations Development Programme, New York, https://hdr.undp.org/data-center/human-development-index#/indicies/HDI.

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