The International Labour Organisation (ILO) released the Global Wage Report for 2018, with a special focus on the global gender pay gap. The report presents the most recent trends in wage rates and offers comparative analyses among different countries and regions around the world.
Falling Dives in Global Wage Growth
According to the findings of the report, 2017 witnessed the lowest rate of wage growth globally since 2008. However, within Southern Asia, India had the highest average real wage growth during 2008-17, at 5.5%.
Slow Wage Growth in High-Income Countries & Wide Gaps in Developing Countries
Even though developing countries are experiencing quicker wage increase than higher-income countries, the employed population in these countries still can’t meet their basic needs due to the wide gaps and low level of wages. On the other hand, high-income countries have been experiencing slow wage growth over the same period.
More Robust Wage Growth in Low- and Middle-Income Countries
Between 2008 and 2017, all emerging G20 countries, except Mexico, experienced positive growth in average real wages. In fact, the real wages in the emerging and developing countries of the G20 almost tripled between 1999 and 2017.
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| Country | Real Wage Growth (2008-2017) |
|---|---|
| India | 5.5% |
| Mexico | No Significant Growth |
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Wage and Productivity Gap in High-Income Countries
Labour productivity has been growing more rapidly than real wages in high-income countries, resulting in labour compensation in GDP in many countries to remain far under the levels of the early 1990s.
Wage Inequality is Highest in Low-Income Countries
The report revealed that wage inequality is highest among low- and middle-income countries while high-income countries have relatively lower wage inequalities. Specifically, within high-income countries, Sweden has the lowest wage inequality and Chile the highest. In contrast, among low-income and middle-income countries, South Africa and Namibia have the highest inequality, with Armenia and Mongolia having the lowest.
Gender Pay Gaps: Social Injustice of Today
Women continue to be under-represented and underpaid in traditionally male-occupied categories, regardless of their educational background. The highest gender pay gap in high-income countries exists in top-salaried positions, whereas in low- and middle-income countries, the gap is widest amongst lower-paid workers.
Addressing Gender Pay Gaps: The Role of EPIC
The Equal Pay International Coalition (EPIC), launched in September 2017, is a multi-stakeholder initiative that includes the ILO, UN Women and the OECD. It aims to achieve equal pay for women and men by supporting UN’s Sustainable Development Goals (SDG) 8, which focuses on achieving full and productive employment and decent work for all, including for young people and persons with disabilities, and equal pay for work of equal value by 2030.
About the International Labour Organization (ILO)
Founded in 1919, the International Labour Organisation (ILO) promotes social justice contributing to universal and lasting peace. It draws up and oversees international labour standards and is the only United Nations agency that brings together governments, employers, and workers to shape policies and programmes promoting decent work for all.