24hoursworld

Argentina has the lowest minimum wage in dollars in the region

Argentina has the lowest minimum wage in dollars in the region

He minimum salary In Argentina it is one of the lowest in the region. This was revealed in a report from the UNDAV Public Policy Observatory.

As explained in an extensive analysis, Argentina has a strong exchange rate component, in addition to the inertial one. Therefore, the high levels of monthly inflation are mainly explained by the strong devaluation in the month of December. The variation of the dollar fell sharply, an element that explains the drop in monthly inflation, which still persists at high levels, due to its inertia and the correction of relative prices.

At the same time, at the time of appreciation, the real salary usually increases, in the same way that it tends to fall with exchange rate increases. In these months only the last of the two experiences has been experienced: The devaluation led to a sharp drop in real income, bringing it to a minimum in relation to other countries.

salaries.PNG

As a second round, The appreciation process was not accompanied by an increase in real wages product of the continuity of correction of relative prices and the inertia due to the persistence in the indexation of contracts.

With this, the AArgentina tops the ranking of minimum wages, It has a poor performance in retirement and at the same time has some of the most expensive products in the region in supermarkets.

Low salaries: where Argentina is compared to other countries

The report shows Argentina with a minimum wage of 264 dollars at the official exchange rate (being lower than the financial rate), far behind countries such as Brazil (274), Bolivia (362) or Chile (516). At the same time, It has essential products such as milk, coffee or noodles that are more expensive than those same countries, always measured in the same currency.

minimumsalary444.PNG

According to UNDAV, the devaluation had an impact on prices and a drop in wages that is not being compensated by the strong subsequent appreciation. This produces the feeling that Argentina is being “expensive” in international comparison. Although in terms of all prices in the economy, it is far from being one of the most expensive countries in the world, there was a sharp rise in prices in dollars, which makes goods, especially, very expensive. Services, although they have increased more so far this year, are still somewhat behind, precisely because a component important part of the services is the salary, which is lagging behind.

minimum wage.PNG

Salaries: conclusion of the study

All in all, it is concluded that Argentina is going through a strong inflationary process that, although the final outcome is uncertain, is combined with a process of rising prices in hard currency that is not accompanied by the income of the population. As a result, the number of households in poverty will increase. In the last decade, Argentina went from salaries in dollars from the highest to the lowest in the region.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts