Home > Uncategorized > Minimum wages around the world

Minimum wages around the world

Related image

Source: https://gshindi.com/category/national-issues/minimum-wage-proposal-big-risk

  1. August 10, 2018 at 4:11 am

    As I cannot read HIndi, I only suppose that the minimum wages here presented are legally stipulated one and not the actual wage rates. Even though the chart shows how big the wage discrepancies are in the world.

    On the other hand, if we see trade theory (which is in fact microeconomics of international economics), we often see analyses of wage differences within a country (e.g. wage rate discrepancies in the USA) but few papers that treat wage differences between countries. In my opinion, this is one of wrong points of mainstream trade theories. If I cite the most conspicuous example, the factor price equalization theorem is still taught in the under graduate courses. Wage rate is a factor price of labor. So the the factor price equalization theorem claims that (when the sufficient conditions are satisfied) the wages of all countries become equal. The term “equalization” itself is tricky. It sounds that the theorem predicts “equalization” of wage rates in the future but the theorem actually contends that wages are equal. {Samuelson himself knew well that this was a silly theroem].

    There are four generations of models in the mainstream trade theory but none of them make clear why and how the wage rates discrepancies are so wide. Many heterodox economists criticizes trade policies of the mainstream or unrealistic features of neoclassical trade theory but they produce no theory that can explain this conspicuous fact of world economy (except for example a half baked theory of unequal exchange by Arghiri Emmanuel). It is true there are few heterodox economists who work in trade theory but all economists and those who are interested in and worried of the actual state of economics should know that there exists a new analytical theory that can explain why and how wage rates of different countries are determined.

    See my paper: The New Theory of International \values: an Overview.

    This is a chapter of a book published in 2017 but you can read the draft at
    https://www.researchgate.net/publication/304717720_The_New_Theory_of_International_Values_An_Overview

  2. Frank Salter
    August 10, 2018 at 7:00 am

    I would suggest that there are two unrelated effects being seen in the minimum wage figures.

    The first is the capital equipment (both in quantity and quality) being applied. The second is the labour share in different countries.

    It would be interesting to be able to compare the per capita GDP with all these quantities.

  3. Helen Sakho
    August 11, 2018 at 1:28 am

    I think the key thing to note here is that the minimum wage around the world is expressed in US dollars. Other key currencies are either sinking or sinking! Positivists had a “realist” explanation of hierarchy of needs, by which they presumably meant wants. Or was it the way around? Marlow’s model was a reasonable example. I am familiar with Hindi, but please trust me when I say that even if you spoke and understood all the different dialects of one of the main languages, the whole of that vast and amazing place has been nothing but another example of old style (very effective) imperialism that divides and rules according to his/her own hierarchy of fanciful sins. If and when anyone can write a new formula for the elimination of the cast system permanently or the countless millions of little baby girls being chocked before they are even a year old (I have called this Gedercide”), or the other countless millions who are starving or being sold to strangers as sex slaves by their own relatives, let me know please?
    I am sure the rich global expatriates who have now decided to revitalise their senses in old age there could not give a toss. Ek+Ek should equal 2, but it never did and it is extremely unlikely to do so now.

    • August 11, 2018 at 4:39 am

      Big differences of wage rates are not problem of needs. How can we imagine that an Australian needs 60 times of products than an Indian does. Big differences of wage rates are a question of economics and it can be explained by the big differences that nations holds as their production techniques. Note that the state of infrastructure of a nation strongly affects the efficiency of production techniques. If India improves the system of production techniques appropriately, it is not possible to raise its general wage rates. Of course, the same proposition applies to all countries that desire to raise wage rates and income per capita. It is deplorable that many development economists do not recognize this simple truth.

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.