EXPECTED WAGES OF SELECTED

NON-MARKET ECONOMY COUNTRIES

1998 INCOME DATA

Revised May 2000

EXPECTED 1998 WAGES OF SELECTED NME COUNTRIES (IN US DOLLARS)
Country 1998 GNP Per Capita Expected 1998 Wages Per Hour
Armenia $480 $0.68
Azerbaijan $490 $0.68
Belarus $2,200 $1.48
Estonia $3,390 $2.03
Georgia $930 $0.89
Kazakhstan $1,310 $1.06
Kyrgyz Republic $350 $0.62
Lithuania $2,440 $1.59
Moldova $410 $0.64
People's Republic of China $750 $0.80
Romania $1,390 $1.10
Russian Federation $2,300 $1.52
Tajikistan $350 $0.62
Turkmenistan $760 $0.81
Ukraine $850 $0.85
Uzbekistan $870 $0.86
     
Equation: Wage Rate = (GNP * 0.0004642) + 0.453987

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CALCULATION OF 1998 WAGES PER HOUR IN US DOLLARS
Country Reported Wage Rate Measuring Currency Measuring Unit Reporting Year Hours Inflator to 1998 1998 Exchange Rate Hourly Wages Inflated Hourly Wages 1998 Wages Per Hour in US dollars
Algeria 12323 dinars month 1996 192 1.0592 58.7390 64.18 67.98 1.157
Argentina 4.12 pesos hour 1998 1 1.0000 0.9995 4.12 4.12 4.122
Australia 17.38 dollar hour 1998 1 1.0000 0.6294 17.38 17.38 10.939
Austria 27776 schilling month 1997 192 1.0087 12.3790 144.67 145.93 11.788
Belgium 406.79 franc hour 1997 1 1.0096 36.2990 406.79 410.71 11.315
Bolivia 1094 boliviano month 1996 192 1.1281 5.5101 5.70 6.43 1.167
Botswana 632 pula month 1998 192 1.0000 4.2259 3.29 3.29 0.779
Brazil 637.1 real month 1997 192 1.0315 1.1610 3.32 3.42 2.948
Canada 17.2 dollar hour 1998 1 1.0000 1.4835 17.20 17.20 11.594
Chile 200773 peso month 1998 192 1.0000 460.2900 1045.69 1045.69 2.272
Colombia 456955 peso month 1997 192 1.2036 1426.0400 2379.97 2864.63 2.009
Costa Rica 85899 colone month 1998 192 1.0000 257.2300 447.39 447.39 1.739
Croatia 2196 kuna month 1997 192 1.1221 6.3620 11.44 12.83 2.017
Dominican Republic 21.6 peso hour 1997 1 1.0456 15.2670 21.60 22.58 1.479
Egypt 93 pound week 1996 44 1.0896 3.3880 2.11 2.30 0.680
El Salvador 7.5 colone hour 1996 1 1.0710 8.7750 7.50 8.03 0.915
Finland 60.09 markaa hour 1995 1 1.0320 5.3441 60.09 62.01 11.604
France 55.4 francs hour 1997 1 1.0068 5.8995 55.40 55.78 9.454
Germany 26.78 mark hour 1998 1 1.0000 1.7597 26.78 26.78 15.219
Greece 1470.5 drachma hour 1997 1 1.0473 295.5300 1470.50 1540.03 5.211
Guatemala 1541.03 quetzale month 1998 192 1.0000 6.3947 8.03 8.03 1.255
India 1188.8 rupee month 1996 192 1.2128 41.2590 6.19 7.51 0.182
Ireland 7.26 pound hour 1998 1 1.0000 1.4257 7.26 7.26 10.351
Israel 39 new shekel hour 1998 1 1.0000 3.8001 39.00 39.00 10.263
Japan 289600 yen month 1998 192 1.0000 130.9100 1508.33 1508.33 11.522
Jordan 5.27 dinar day 1995 8 1.1460 1.4104 0.66 0.75 1.065
Kenya 5510.8 shilling month 1997 192 1.0582 60.3670 28.70 30.37 0.503
Korea (Rep. of) 1284500 won month 1998 192 1.0000 1401.4400 6690.10 6690.10 4.774
Malaysia 1115 ringgit month 1996 192 1.0802 3.9244 5.81 6.27 1.598
Mexico 1927.4 nuevo peso month 1998 192 1.0000 9.1360 10.04 10.04 1.099
Netherlands 28.85 guilder hour 1995 1 1.0810 1.9837 28.85 31.19 15.722
New Zealand 16.33 dollar hour 1998 1 1.0000 0.5367 16.33 16.33 8.764
Norway 125.47 kroner hour 1998 1 1.0000 7.5451 125.47 125.47 16.629
Pakistan 2878 rupee month 1996 192 1.1830 44.5500 14.99 17.73 0.398
Panama 597 balboa month 1996 192 1.0188 1.0000 3.11 3.17 3.168
Peru 24.93 nuevo sole day 1998 8 1.0000 2.9300 3.12 3.12 1.064
Philipines 6654 peso month 1995 192 1.2670 40.8930 34.66 43.91 1.074
Poland 1206.7 new zloty month 1998 192 1.0000 3.4754 6.28 6.28 1.808
Portugal 703 escudo hour 1998 1 1.0000 180.1000 703.00 703.00 3.903
Singapore 2553 dollar month 1998 192 1.0000 1.6736 13.30 13.30 7.945
Slovenia 132080 tolar month 1998 192 1.0000 166.1300 687.92 687.92 4.141
Spain 1429 peseta hour 1998 1 1.0000 149.4000 1429.00 1429.00 9.565
Sri Lanka 20.34 rupee hour 1998 1 1.0000 64.5930 20.34 20.34 0.315
Sweden 101.24 kronor hour 1997 1 1.0000 7.9499 101.24 101.24 12.735
Switzerland 5565 franc month 1996 192 1.0050 1.4498 28.98 29.13 20.091
Thailand 5935 baht month 1997 192 1.0805 41.3590 30.91 33.40 0.808
United Kingdom 9.1 pound hour 1998 1 1.0000 1.6564 9.10 9.10 15.073
United States 13.49 dollar hour 1998 1 1.0000 1.0000 13.49 13.49 13.490
Zimbabwe 2951.51 dollar month 1997 192 1.3183 0.0467 15.37 20.27 0.946

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WAGES AND GNP IN US DOLLARS (IN GNP ORDER)
Country 1998 Hourly Wage in US$ 1998 GNP Per Capita in US$
Kenya 0.503 330
India 0.182 430
Pakistan 0.398 480
Zimbabwe 0.946 610
Sri Lanka 0.315 810
Bolivia 1.167 1,000
Philipines 1.074 1,050
Egypt 0.680 1,290
Jordan 1.065 1,520
Algeria 1.157 1,550
Guatemala 1.255 1,640
Dominican Republic 1.479 1,770
El Salvador 0.915 1,850
Thailand 0.808 2,200
Peru 1.064 2,460
Colombia 2.009 2,600
Costa Rica 1.739 2,780
Panama 3.168 3,080
Botswana 0.779 3,600
Malaysia 1.598 3,600
Poland 1.808 3,900
Mexico 1.099 3,970
Croatia 2.017 4,520
Brazil 2.948 4,570
Chile 2.272 4,810
Korea (Rep. of) 4.774 7,970
Argentina 4.122 8,970
Slovenia 4.141 9,760
Portugal 3.903 10,690
Greece 5.211 11,650
Spain 9.565 14,080
New Zealand 8.764 14,700
Israel 10.263 15,940
Ireland 10.351 18,340
Canada 11.594 20,020
Australia 10.939 20,300
United Kingdom 15.073 21,400
Finland 11.604 24,110
Netherlands 15.722 24,760
France 9.454 24,940
Belgium 11.315 25,380
Sweden 12.735 25,620
Germany 15.219 25,850
Austria 11.788 26,850
United States 13.490 29,340
Singapore 7.945 30,060
Japan 11.522 32,380
Norway 16.629 34,330
Switzerland 20.091 40,080

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Regression Output:
Constant 0.453987
Std Err of Y Est 1.7547551
R Squared 0.9039565
No. of Observations 49
Degrees of Freedom 47
 
X Coefficient(s) 0.0004642
Std Err of Coef. 0.0000221
 
Equation: Wage Rate = (GNP * 0.0004642) + 0.453987




Notes:

General: The selection of countries was based upon the availability of wage data for 1994 or later as reported in the Yearbook of Labour Statistics 1999, International Labour Organization ("ILO"), (Geneva: 1999), GNP data as reported in World Development Indicators, World Bank, 1999/2000, and exchange rate information.

Wages: Wage rates were reported in the Yearbook of Labour Statistics 1999, ILO, (Geneva: 1999), Chapter 5B: Wages in Manufacturing. The years of the reported wage rates range from 1994 to 1998. Reported wages prior to 1994 were excluded from the analysis and all calculations.

Wages reported by ILO in most cases are based on cash payments received from employers on a regular basis. In addition to remuneration for normal working hours, cost-of-living allowances and other regularly paid allowances are included in wages. Wages do not include remuneration for overtime, bonuses and gratuities, family allowances, or other social security payments made by the employer. See Yearbook of Labour Statistics 1999 for further discussion of wage data.

Where monthly or daily wages were given, hourly wages were calculated assuming 24 working days per month, 5.5 working days per week, 8 working hours per day. 

Inflator: Wages were inflated, where the base year was not 1998, using the consumer price index (or wage rate index) data reported in International Financial Statistics,  International Monetary Fund, February 2000. The Inflator rate was calculated by dividing consumer price index for 1998 by the consumer price index for the year the wage rate was reported.

Exchange rates: In most cases, exchange rates were expressed as foreign currency per one U.S. dollar. Rates as reported in International Financial Statistics, International Monetary Fund, February 2000. Rates are market average for the entire year.

National Income: GNP, as reported in Selected World Development Indicators 1999/2000,  World Bank, 1999/2000. See Selected World Development Indicators 1999/2000 for further information.

Analysis: Regression analysis is ordinary least squares analysis.