In Asia, the correlation between economic strength and the minimum wage is somewhat strong. The majority of nations on the continent have a per capita GDP PPP below 30,000 international dollars and a minimum wage below 10,000 international dollars. The only countries that surpass both of these numbers are Kuwait, Oman, Japan, South Korea, Israel, and Turkey.
Findings
- The correlation coefficient between per capita Gross Domestic Product (GDP) in Purchasing Power Parity (PPP) and minimum wage in Asia is 0.60.
- As economic strength increases in Asia, the minimum wage also increases.
- Yemen has the lowest minimum wages on the continent but manages to have the second smallest per capita GDP PPP.
- Afghanistan has the smallest per capita GDP PPP but has the 13th lowest minimum wages.
- Kuwait has the largest per capita GDP PPP but the 17th highest minimum wage on the continent.
- Oman on the other hand, has the highest minimum wage but only the second largest per capita GDP PPP.
Caveats
- As always, correlation does not imply causation.
- Bahrain, Brunei, Cambodia, Cyprus, Hong Kong, North Korea, Macao, Maldives, Palestine, Qatar, Saudi Arabia, Singapore, Syria, Taiwan, and the United Arab Emirates were missing data.
- Minimum wages sometimes vary by profession and other variables.
Details
The former Soviet republics all have low minimum wages and a low per capita GDP PPP. South Asia also joins the double low club.
Outside of former Soviet republics and South Asia, the rest of the continent has a mix of low and high numbers.
Per capita GDP PPP as a multiple of minimum wage, ranges from 0.60 in Afghanistan where the minimum wage is higher than the per capita GDP PPP to 49.48 in Yemen.
Country Codes
Code | Country |
---|---|
AF | Afghanistan |
AM | Armenia |
AZ | Azerbaijan |
BD | Bangladesh |
BT | Bhutan |
CN | China |
GE | Georgia |
ID | Indonesia |
IL | Israel |
IN | India |
IQ | Iraq |
IR | Iran |
JO | Jordan |
JP | Japan |
KG | Kyrgyzstan |
KR | South Korea |
KW | Kuwait |
KZ | Kazakhstan |
LA | Laos |
LB | Lebanon |
LK | Sri Lanka |
MM | Myanmar |
MN | Mongolia |
MY | Malaysia |
NP | Nepal |
OM | Oman |
PH | Philippines |
PK | Pakistan |
TH | Thailand |
TJ | Tajikistan |
TL | Timor-Leste |
TM | Turkmenistan |
TR | Turkey |
UZ | Uzbekistan |
VN | Vietnam |
YE | Yemen |
Sources
US Department of State. 2017. "Country Reports on Human Rights Practices for 2016." Accessed September 2, 2017. https://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm#wrapper.