HomeResourcesLabour ResourcesWGCWage Gap 12 LG1

 

  • In 2005, Mexico continues showing the worst real wage -with no improvement- in purchasing power parities (PPPs), for it has the greatest equalized wage gap with the U.S. (85%), when compared against other emerging economies and against eight developed economies. In other words, a Mexican worker earns only 15% of the purchasing power (material quality of life) enjoyed by the equivalent U.S. counterpart, for a product that will be marketed globally at global prices,
     
  • Even in Brazil's case -the most similar economy with available data- the wage gap is clearly less dramatic (60%) than in the Mexican case,
     
  • Among Asian economies, all show higher nominal wages and smaller wage gaps than Mexico. South Korea, in particular, a country with a wage gap three times as large as Mexico's in 1975- has a lower wage gap than Japan in 2005 (21% vs. 26%).