HomeResourcesLabour ResourcesWGCWage Gap size 9 LG2

 

  • In the last 30 years, all the G7 nations, Spain and South Korea surpassed, eliminated or, at least, experienced a very significant reduction of their PPP wage gaps equalized with equivalent U.S. jobs. In dramatic contrast, Mexico moved in the opposite direction. That is, in 30 years, Mexico increased its equalization gap from 70% to a dramatic 85% with respect to the U.S.,
     
  • South Korea, with a much lower development than Mexico 30 years ago, dramatically reduced its wage gap to put it at a lower level with Japan. Mexico, instead, increased the exclusion of a great part of its population by maintaining a labour market with hunger wages and, in consequence, an absence of generation of aggregate demand,
     
  • In 2004 France, Great Britain and Italy eliminated or almost closed their wage gaps with the U.S., yet by losing purchasing power by an average of 10,4% they reopened them in 2005. Germany continues having greater purchasing power than the U.S., but down to 17 points from the previous 31 points. Canada is now at par with the U.S.