GLU: Global wage trends: The great convergence?

Generally, wages have taken a bigger hit in developed
than in developing countries.

By Patrick Belser, originally published in the Global Labour Column

The financial and economic crisis has cut global wage growth by
roughly half in 2008 and 2009. Based on a sample that covers a
large chunk of the world’s 1.4 billion wage-earners, the Global
Wage Report 2010/11 finds that the global growth in real monthly
wages slowed from 2.7 and 2.8 per cent in the two years before the
crisis (2006 and 2007) to 1.5 and 1.6 per cent in 2008 and 2009. If
China – where data coverage is limited to fast growing “urban
units” – is excluded from the sample, the average wage growth
drops from 2.1 and 2.2 per cent before the crisis to 0.8 and 0.7 per
cent in 2008 and 2009. In 2010, preliminary results suggest that
wages have started to recover, but not as fast as profits and not yet
to pre-crisis levels.

Global wage trends: The great convergence?