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.