The equation is clear: For the government's poverty alleviation policies to work, real wages
must increase as a result of increased labor productivity.
In Eastern Europe, real wages
are forecast to rise by 2 per cent, higher than last year's 1.4 per cent, while in Western Europe, inflation-adjusted real wage
increase will be approximately 0.7 per cent, down from the predicted 0.9 per cent last year.
Expected impact on the notes' rating of increased real wage
decline (class A1/A2/B)
It showed which local authority areas have suffered the biggest hit to real wages
- take home pay once the cost of living has been taken into account - since the 2008 financial crisis.
In the last 20 years, average real wages
have almost tripled in emerging and developing G20 countries, while in advanced G20 countries they have increased by just 9 per cent, the report shows.
In a briefing on Monday, World Bank Philippines senior economist Rong Qian said there was zero real wage
growth in the country between 2000 and 2016, which she found unusual for a developing country.
In the modern activities, therefore, the real wage
consistently lagged behind labour productivity growth.
It added that, due to higher food and fuel prices over the coming year: "In Italy, Spain, the UK, Belgium, Finland and Cyprus, workers will even have to expect real wage
losses in 2017."
The increase in real wage
gap between non-union members in unionized enterprises and workers in enterprises without any union has been higher for white-collar workers than for blue-collar and pink-collar workers.
According to new research by the Economic Policy Institute, in 2015, the racial wage gap stood at 26.7 percent, with whites taking home an hourly real wage
of $25.22 on average, compared to $18.49 for blacks.
where Y is real GDP, L is labor, K is real capital stock, w(=W/[P.sup.Y]) is the real wage
and r(=R/[P.sup.Y]) is the real user cost of capital, and PY is the price index used to deflate GDP.