 Wages Around the World: Pay across Occupations and CountriesRichard Freeman and Remco Oostendorp Chapter 2 in Inequality Around the World, 2002, pp 5-37 from Palgrave Macmillan Abstract: Abstract Consider the wages of workers in two occupations in two countries: say a labourer and software engineer in India and a labourer and software engineer in Germany. There are three useful contrasts one can make with these wages: 1. The percentage (or absolute) differential between the wages of more skilled and less skilled workers within each country. All else the same, this skill differential reflects the return to human capital and the degree of inequality in the wage structure in the countries. 2. The ratio of the wages of workers in the same occupation between the countries, measured in a common currency through exchange rates. All else the same, this cost differential reflects the different cost of producing goods with these workers. 3. The difference in wages for workers in the same occupation, measured in purchasing power parity (PPP) units. All else the same, these living standard differentials measure differences in the economic well-being of similarly skilled workers. Keywords: Exchange Rate; Collective Bargaining; Economic Freedom; Purchase Power Parity; Advanced Country (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-137-09971-6_2 Ordering information: This item can be ordered from DOI: 10.1007/978-1-137-09971-6_2 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
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