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International Comparisons of Hourly Compensation Costs in Manufacturing, 2016 - China and India

Correction Statement
19 April 2018
Hourly compensation costs for Argentina, 2015-2016
Due to a technical error, 2015 and 2016 data for Argentina were incorrectly published in the 16 February 2018 release of ILC's "International Comparisons of Hourly Compensation Costs in Manufacturing" database. The corrections apply to estimates of hourly compensation costs and its components for Argentina, including "pay for time worked," "directly paid benefits," "total direct pay," and "social insurance expenditures and labor-related taxes," which were all previously understated. The correction makes hourly compensation costs for Argentina more in line with those for Greece rather than those for certain Eastern European economies.

16 February 2018

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Chart 4. Manufacturing hourly compensation costs in China and India, US dollars

Chart 5. Manufacturing employers' social insurance expenditures as a percent of total compensation costs 

Table 4. Manufacturing hourly compensation costs in China and India, in US dollars and as a percent of costs in the United States (US =100)

Chart 4. Manufacturing hourly compensation costs in China and India, US dollars

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Chart 5. Manufacturing employers' social insurance expenditures as a percent of total compensation costs

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TABLE 4. Manufacturing hourly compensation costs in China and India, in US dollars and as a percent of costs in the United States (US =100)  
Hourly Compensation Costs(1)      
   US Dollars  US = 100 
China (2) India (3) China India
1999 NA 0.68 NA 2.9
2000 NA 0.70 NA 2.8
2001 NA 0.71 NA 2.7
2002 0.60 0.73 2.2 2.7
2003 0.68 0.81 2.4 2.8
2004 0.75 0.85 2.6 2.9
2005 0.84 0.91 2.8 3.0
2006 0.96 0.95 3.1 3.1
2007 1.21 1.17 3.8 3.6
2008 1.59 1.26 4.9 3.8
2009 1.74 1.23 5.1 3.6
2010 1.98 1.46 5.7 4.2
2011 2.62 1.59 7.4 4.5
2012 3.06 1.59 8.6 4.5
2013 4.11 1.60 11.3 4.4
2014 NA  1.69  NA  4.6 
2015 NA NA NA NA
2016 NA NA NA NA

For country information and a description of data limitations associated with estimates for China and India, see the Country Notes.
(1) Due to various data gaps and methodological issues, compensation costs for China and India are not directly comparable to each other or with the data for other countries found in this report, and therefore are presented separately.

(2) Data on manufacturing compensation and employees in China refer to registered "urban units" in urban areas and registered "town and village enterprises" (TVEs) in rural areas. Manufacturing enterprises in both urban and rural areas are registered based on location and refer to enterprises of all sizes (there are no reporting cut-offs based on number of employees or revenue). However, registered enterprises represent only formal sector manufacturing captured by government registration records. Manufacturing workers in unregistered or informal manufacturing, who earn substantially less than their formal sector counterparts, are not represented in these data. Further, urban unit data are highly skewed toward the state-owned sector, introducing further bias in the final estimates.

(3) Compensation costs data for India refer to the organized manufacturing sector, that is, the portion of India’s manufacturing activity that is formally registered with state governments and is therefore subject to regulation. The unorganized sector is not regulated, and little data exist for its enterprises. The lack of information on the unorganized sector means that manufacturing workers in unorganized or informal manufacturing, who earn substantially less than their organized sector counterparts, are not represented in these data.

Source: The Conference Board, International Labor Comparisons program, February 2018

 


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