Real wages have been declining for twenty years. People are working harder, they have to work longer hours, they have less security things are just looking bad for a lot of people, especially young people. I mean, very few people expect the future for their children to be anything like what they had, and entry-level wages in the United States have just declined radically in the last fifteen years-for instance, wages you get for your first job after high school are now down 30 percent for males and 18 percent for females over 1980, and that just kind of changes your picture of life." ― Noam Chomsky, Understanding Power: The Indispensable Chomsky Global Wage Report 2018/19 Global wage growth lowest
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Global wage growth falls to 1.8 % in 2017
Global wage growth lowest since 2008, while women still earning 20 per cent less than men The latest ILO Global Wage report finds
global wage growth has been weak while the gender pay gap, at about 20 per cent globally, remains unacceptably high.
Far below levels before the global financial crisis

Thesynergyonline Economics Bureau

GENEVA : Global wage growth in 2017 fell to its lowest rate since 2008, far below levels before the global financial crisis, according to a new International Labour Organization (ILO) report. The Global Wage Report 2018/19 finds that in real terms (adjusted for price inflation) global wage growth declined to 1.8 per cent in 2017 from 2.4 per cent in 2016. The findings are based on data from 136 countries.

Global wage report

2018/19

The Global Wage Report 2018/19 finds that in real terms (adjusted for price inflation) global wage growth declined to 1.8 per cent in 2017 from 2.4 per cent in 2016. The findings are based on data from 136 countries. In analyzing wage growth, the report finds that in advanced G20 countries real wage growth declined from 0.9 per cent in 2016 to 0.4 per cent in 2017. By contrast, in emerging and developing G20 countries, real wage growth fluctuated between 4.9 per cent in 2016 and 4.3 per cent in 2017. .

Differences in the levels of education between men and women who work in paid employment, play a limited role in explaining gender pay gaps.

"It's puzzling that in high-income economies we see slow wage growth alongside a recovery in GDP growth and falling unemployment. And early indications suggest that slow wage growth continues in 2018," said ILO Director-General Guy Ryder. "Such stagnating wages are an obstacle to economic growth and rising living standards. Countries should explore, with their social partners, ways to achieve socially and economically sustainable wage growth."

In the last 20 years, average real wages have almost tripled in emerging and developing G20 countries, while in advanced G20 countries they have increased by just 9 per cent, the report shows. But, in many low- and middle-income economies, wage inequality remains high and wages are frequently insufficient to cover the needs of workers and their families. Unacceptably high gender pay gaps.

Gender pay gaps

in innovative and more accurate ways

The report calculates gender pay gaps in innovative and more accurate ways, using data covering some 70 countries and about 80 per cent of wage employees worldwide. It finds that globally women continue to be paid approximately 20 per cent less than men.

"We're still living with the ideology of compromise, not with the ideology of recognition" ― Dipin Damodharan

"The gender pay gap represents one of today's greatest manifestations of social injustice, and all countries should try to better understand what lies behind them and accelerate progress towards gender equality," said Guy Ryder.

Report

finding

The report finds that in high-income countries it is at the high end of the pay scale that the gender pay gap is wider, while in low- and middle-income countries the gender pay gap is wider amongst the lower paid workers.

The gender pay gap

represenrts

"The gender pay gap represents one of today's greatest manifestations of social injustice." Guy Ryder, ILO Director-General Using empirical evidence, the report also shows that traditional explanations, such as differences in the levels of education between men and women who work in paid employment, play a limited role in explaining gender pay gaps. "In many countries women are more highly educated than men but earn lower wages, even when they work in the same occupational categories," said Rosalia Vazquez-Alvarez, econometrician and wage specialist at the ILO and one of the authors of the report. "The wages of both men and women also tend to be lower in enterprises and occupations with a predominantly female workforce. To reduce gender pay gaps more emphasis therefore needs to be placed on ensuring equal pay for women and men, and on addressing the undervaluation of women's work," she said.

Another factor which weighs on the gender wage gap is motherhood. The report shows that mothers tend to have lower wages compared to non-mothers. This may be related to a host of factors, including labour market interruptions, reductions in working time, employment in more family-friendly jobs with lower wages, or stereotypical promotion decisions at enterprise level.

According to the report, a more equitable sharing of family duties between men and women would in many instances lead to women making different occupational choices.

Surprisingly, the evidence shows that even before women reach motherhood, there is already a pay gap. This suggests a need to combat stereotypes and discrimination at the point of entry into the labour market.