(10 December 2014) – The Global Wage Report 2014/15, published by the International Labour Organization (ILO), points to changes in wages and paid employment as key factors underlying recent trends in inequality.
The Global Wage Report analyses the evolution of real wages around the world, giving a unique picture of wage trends and relative purchasing power globally and by region.
The 2014/15 edition examines the link between wages and inequality at the household level. It shows that wages constitute the largest single source of income for households with at least one member of working age in most countries. It also considers wage gaps between certain groups, such as those between women and men, migrants and nationals, and workers in the informal and formal economy.
Inequality can be addressed through policies that affect wage distribution directly or indirectly, as well as through fiscal redistribution. However, increasing inequality in the labour market places a heavier burden on efforts to reduce inequality through taxes and transfers.
The report thus emphasizes the need for combined policy action that includes minimum wages, strengthened collective bargaining, interventions to eliminate wage gaps, the promotion of paid employment and redistribution through taxes and transfers.