Question

Why is a living wage considered a price floor? Does imposing a living wage have the same outcome as a minimum wage?

Short answer

Living wage is considered a price ie wage floor, as it is the bare minimum needed for decent survival standards. Yes, imposing a living wage have similar outcome as minimum wage - ie protecting workers.

Step-by-step solution

 Basic Concepts 

Living wage is hypothetical income level, that facilitates individuals to afford basic needs of life at decent quality level. Basic amenities include food, shelter & other necessities.

Price Floor is the minimum mandated price sale price of a good or service, imposed by regulatory body to protect the interests of sellers.

Detail Explanation 

In labor markets - workers are the sellers & firms are buyers of productive services, and the price paid by latter to former is wages or salaries.

Price ie wage floor is analogous to 'living wage', imposed to protect workers from poverty.

Their impacts are also same, ie prevention of workers from being economically exploited.