Monday, 18 February 2013

ILO Global Wage Report 2012/13

Nat O'Connor: There is a lot of interesting data in the latest ILO report focusing on the declining wage share of labour, and on static or falling earnings in the developed economies in particular.

The report is here (PDF).

The following description is from the ILO website:
"The 2012/13 edition looks at the macroeconomic effects of wages, and in particular at how current trends are linked to equitable growth. The gap between wage growth and labour productivity growth is widening, the difference between the top and bottom earners is increasing, and the labour income share is declining."

"These worrying changes affect the key components of aggregate demand – particularly consumption, investment and net exports – that are necessary for recovery and growth. The report looks at the reasons for these trends, which range from the increasing financial and trade globalization to advances in technology and the decline in union density."

"The report calls for internal and external “rebalancing” to achieve more socially and economically sustainable outcomes within and across countries, proposing policy actions beyond labour markets and national borders."

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