I never used nannies, so I am not so knowledgeable in this area, but it seems to me that even if you give room and board for someone, that should not necessarily mean they ought to earn LESS than if they did not live in. People tend to take more advantage of someone who is already living in the home, expecting them to babysit because they are already there, and the job tends to be more of a 24 hr type than the 9-5 of a non live in. Their housekeeping duties also seem more extensive. I never understood that.
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