This is something of a surprise actually, and it’s also an interesting indicator of just how fast economic growth can be. Average wages in South Korea are now higher than they are in Japan. Underneath this is the slightly surprising detail that GDP per capita is still significantly lower in Korea than it is in Japan. That means that, out of a smaller set of economic resources (that GDP, obviously), Korea is doing a better job of providing a level of consumption for the workers than Japan is. And that is, in the end, what having an economy is all about. Enabling consumption by the general population of the country.
The average wage of Korean workers has surpassed that of Japan in terms of purchasing power parity (PPP) for the first time. In addition, Korea topped the list of OECD member countries in the pace of wage increases from 1990 to 2013. However, Korean ranked second among OECD counties in terms of wage inequality. Wages rose sharply but it happened around large companies so wage inequality was deepening among workers.
Something that’s common to both countries is that there’s a distinct difference in wage levels between large companies and the smaller ones that surround them. This is true in all economies by the way, but it’s especially marked in these two Far Eastern countries.
It's a forbes article. Sorry I can't post links.
The average wage of Korean workers has surpassed that of Japan in terms of purchasing power parity (PPP) for the first time. In addition, Korea topped the list of OECD member countries in the pace of wage increases from 1990 to 2013. However, Korean ranked second among OECD counties in terms of wage inequality. Wages rose sharply but it happened around large companies so wage inequality was deepening among workers.
Something that’s common to both countries is that there’s a distinct difference in wage levels between large companies and the smaller ones that surround them. This is true in all economies by the way, but it’s especially marked in these two Far Eastern countries.
It's a forbes article. Sorry I can't post links.