• Wage differentials are shrinking globally by 2030


    ​Causes an imbalance in the selection of investment sites
    Wage differentials are shrinking globally by 2030

    Shrinking wage differences expected between mature economies and emerging economies substantially by 2030, according to a study by PricewaterhouseCoopers, a development that would cause an imbalance in the sitting of factories and large institutions, and investment opportunities. According to this projection, the wage gap will shrink to a sharp increase of average wages in the emerging countries, not a decline in wages in developed countries.
    Study says of the European branch of this institution in the Swiss city of Zurich that even with India and the Philippines in the last position of the forecast growth of wages and salaries, as speculated, the average monthly wages can double four times in the first country, from 132 in 2011 to 616 dollars in 2030, and three times in the second, from 169 to 185 dollars. During this time, real wages in France will grow from $ 3,821 2205 dollars in 2030, and in the United States would increase the wages of the 3,484 to $ 4574, and in Britain from 3433 to $ 4,665. Thus, the ratio between the average real wages in France and India will decrease from 28 times higher in France eight times, and between the United States and Mexico, the growth rate will be reduced from seven to four times while in China would increase the average salary to be in 2030 more than half of the average wage in Spain.

    Accordingly, the companies can relocate some production activities or services to the countries of origin, just as started some US companies, or they can move to other countries with relatively low cost, and the candidate countries, Sri Lanka, Bangladesh, Cambodia, and others. Another scenario is that companies can move some economic activities to countries where costs are higher, at first glance, but closer geographically, and so you will be able to strengthen its control over the supply chain.

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