TheMarketForIdeas

Breaking the 3SI Piggybank: Wages, Inflation and Real Values

Mihai Christopher Marian Radovici

Meanwhile, from the same datasets we can observe that, even though most of the 3SI countries increased in this period their minimum hourly pay rates (on average by a quarter), an issue that dragged the rest of the brackets with them (as there is an inverted cascade into the median and high-end salaries), these actions did not necessarily translate into an overall prosperity growth, with even the hours needed to exit the poverty line increasing by approximately 10%. Despite this fact, the redistribution brought them closer to their Western counterparts, with respect to the minimum wages expressed in purchasing power standards, with the region growing faster than France, Germany, Italy of Spain in this timeframe. In turn, labour costs have grown at the same pace, while remaining lower than the EU averages, with some practitioners arguing that this can strain the operational capabilities of companies, particularly SMEs, since every minute worked by the employees is more valuable. More