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Professor Williamson's research paper in the context of Arrighi and Kohler

by Tausch, Arno

10 January 2000 11:57 UTC


Jeffrey Williamson's research paper is - I feel - a must for any world
system scholar. It focuses on real wages and relative factor prices in the
Mediterranean 1820-1940, and has far-reaching implications for our debate
especially in the context of Giovanni Arrighi's and Gernot Kohler's
theories, and also for migration policy research:

http://www.economics.harvard.edu/faculty/jwilliam/papers/1842.html

The paper also  important political consequences - I feel - for the present
debate about EU-enlargement, as a glance at my own new database about wages
and incomes in Europe after 1965 can tell. I condensed for you my most
recent research findings, which I could make available to you upon request -
in German language, unfortunately.

My own data largely support the Arrighi/Kohler approach of international
fluctuations and international exploitation, from which the semi-periphery
escapes only temporarily, to fall back again and again after certain upward
swings. Sorry not to have been able technically to include the graphs:



Average monthly wages ($)       Latest  As of   Year ago        
                                
Bulgaria        108.0   8-99    100.0   
Croatia 616.0   7-99    646.0   
Czech Republic  361.0   9-99    374.0   
Estonia 304.6   6-99    284.6   
Hungary 327.0   8-99    292.0   
Latvia  238.0   11-98   211.8   
Lithuania       269.7   8-99    228.3   
Poland  375.0   8-99    372.0   
Romania 127.0   7-99    154.0   
Russia  64.0    8-99    156.0   
Slovakia        257.0   8-99    279.0   
Slovenia        934.0   8-99    929.0   
                                

US Sate Department:'Minimum wage legislation covers full-time workers as
well as rural workers and domestic employees ages 18 years and over. For
1998, the monthly minimum wage was approximately $336 and was generally
enforced. Along with widespread rent controls, basic food and utility
subsidies, and phased implementation of a minimum guaranteed income, the
minimum wage affords a basic standard of living for a worker and family.
According to the latest figures available, 9.2 percent of the workforce was
receiving minimum wage and the average monthly wage in Portugal was $777.'



Hourly compensation costs in U.S. dollars for production workers in 
manufacturing, 29 countries or areas and selected economic groups,
selected years, 1975-97
____________________________________________________________________________
_____________

Country or area              1975   1980   1985   1990   1993   1994   1995
1996   1997
____________________________________________________________________________
_____________

United States ..........    $6.36  $9.87 $13.01 $14.91 $16.51 $16.87 $17.19
$17.70 $18.24

Canada .................     5.96   8.67  10.94  15.84  16.43  15.85  16.04
16.66  16.55
Mexico .................     1.47   2.21   1.59   1.58   2.40   2.47   1.51
1.54   1.75

Australia ..............     5.62   8.47   8.20  13.07  12.49  14.02  15.05
16.52  16.00
Hong Kong SAR 1 ........      .76   1.51   1.73   3.20   4.29   4.61   4.82
5.14   5.42
Israel .................     2.25   3.79   4.06   8.55   8.82   9.19  10.54
10.99  12.05
Japan ..................     3.00   5.52   6.34  12.80  19.21  21.35  23.82
20.91  19.37

Korea ..................      .32    .96   1.23   3.71   5.64   6.40   7.29
8.09   7.22
New Zealand ............     3.21   5.33   4.47   8.33   8.01   8.93  10.11
11.03  11.02
Singapore ..............      .84   1.49   2.47   3.78   5.25   6.29   7.33
8.32   8.24
Sri Lanka ..............      .28    .22    .28    .35    .42    .45    .48
.48      -
Taiwan .................      .40   1.00   1.50   3.93   5.23   5.55   5.92
5.93   5.89

Austria ................     4.51   8.88   7.58  17.75  20.16  21.51  25.21
24.66  21.92
Belgium ................     6.41  13.11   8.97  19.17  21.44  23.07  26.65
25.89  22.82
Denmark ................     6.28  10.83   8.13  18.04  19.11  20.30  24.07
24.11  22.02
Finland ................     4.61   8.24   8.16  21.03  16.63  19.06  24.14
23.56  21.44

France .................     4.52   8.94   7.52  15.49  16.79  17.63  20.01
19.92  17.97
Germany 2 ..............     6.31  12.25   9.53  21.88  25.32  27.03  32.22
31.79  28.28
Greece .................     1.69   3.73   3.66   6.76   7.23   7.73   9.17
9.59      -
Ireland ................     3.03   5.95   5.92  11.66  11.89  12.39  13.57
13.85  13.57

Italy ..................     4.67   8.15   7.63  17.45  15.80  15.89  16.21
17.73  16.74
Luxembourg .............     6.50  12.03   7.81  16.74  18.74  20.33  23.35
22.55      -
Netherlands ............     6.58  12.06   8.75  18.06  20.08  20.80  24.02
23.08  20.61
Norway .................     6.77  11.59  10.37  21.47  20.21  20.97  24.38
25.05  23.72

Portugal ...............     1.58   2.06   1.53   3.77   4.50   4.60   5.37
5.58   5.29
Spain ..................     2.53   5.89   4.66  11.38  11.62  11.54  12.88
13.51  12.16
Sweden .................     7.18  12.51   9.66  20.93  17.59  18.62  21.44
24.37  22.24
Switzerland ............     6.09  11.09   9.66  20.86  22.63  24.91  29.30
28.34  24.19
United Kingdom .........     3.37   7.56   6.27  12.70  12.41  12.80  13.67
14.13  15.47

Trade-weighted measures 3
All 28 foreign economies ..  3.83   6.60   6.74  12.33  14.32  15.01  16.38
16.09  15.25
OECD 4 ....................  4.25   7.30   7.39  13.46  15.55  16.27  17.75
17.37  16.40
  less Mexico, Korea 5 ....  4.82   8.30   8.48  15.51  17.78  18.57  20.39
19.90  18.77
Europe ....................  5.10   9.90   7.96  17.31  18.36  19.33  22.10
22.19  20.46
European Union ............  5.03   9.83   7.85  17.09  18.14  19.05  21.75
21.87  20.24
Asian NIEs ................   .52   1.17   1.65   3.72   5.19   5.78   6.40
6.87   6.65
____________________________________________________________________________
_____________

Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  Former West Germany. 
3  For description of trade-weighted measures and economic groups, see the
Technical 
   Notes preceding these tables.
4  Organization for Economic Cooperation and Development.
5  Mexico joined the OECD in 1994, and Korea joined in 1996.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September
1998.


Indexes of hourly compensation costs for production workers in 
manufacturing, 29 countries or areas and selected economic groups,
selected years, 1975-97
(Index, United States = 100)
____________________________________________________________________________
__

Country or area           1975  1980  1985  1990  1993  1994  1995  1996
1997
____________________________________________________________________________
__

United States ..........   100   100   100   100   100   100   100   100
100

Canada .................    94    88    84   106   100    94    93    94
91
Mexico .................    23    22    12    11    15    15     9     9
10

Australia ..............    88    86    63    88    76    83    88    93
88
Hong Kong SAR 1 ........    12    15    13    21    26    27    28    29
30
Israel .................    35    38    31    57    53    54    61    62
66
Japan ..................    47    56    49    86   116   127   139   118
106

Korea ..................     5    10     9    25    34    38    42    46
40
New Zealand ............    50    54    34    56    49    53    59    62
60
Singapore ..............    13    15    19    25    32    37    43    47
45
Sri Lanka ..............     4     2     2     2     3     3     3     3
-
Taiwan .................     6    10    12    26    32    33    34    34
32

Austria ................    71    90    58   119   122   128   147   139
120
Belgium ................   101   133    69   129   130   137   155   146
125
Denmark ................    99   110    62   121   116   120   140   136
121
Finland ................    72    83    63   141   101   113   140   133
118

France .................    71    91    58   104   102   105   116   113
99
Germany 2 ..............    99   124    73   147   153   160   187   180
155
Greece .................    27    38    28    45    44    46    53    54
-
Ireland ................    48    60    46    78    72    73    79    78
74

Italy ..................    73    83    59   117    96    94    94   100
92
Luxembourg .............   102   122    60   112   114   121   136   127
-
Netherlands ............   103   122    67   121   122   123   140   130
113
Norway .................   106   117    80   144   122   124   142   142
130

Portugal ...............    25    21    12    25    27    27    31    32
29
Spain ..................    40    60    36    76    70    68    75    76
67
Sweden .................   113   127    74   140   107   110   125   138
122
Switzerland ............    96   112    74   140   137   148   170   160
133
United Kingdom .........    53    77    48    85    75    76    80    80
85

Trade-weighted measures 3
All 28 foreign economies .. 60    67    52    83    87    89    95    91
84
OECD 4 .................... 67    74    57    90    94    96   103    98
90
  less Mexico, Korea 5 .... 76    84    65   104   108   110   119   112
103
Europe .................... 80   100    61   116   111   115   129   125
112
European Union ............ 79   100    60   115   110   113   127   124
111
Asian NIEs ................  8    12    13    25    31    34    37    39
36
____________________________________________________________________________
__

Dash means data not available.
1  Hong Kong Special Administrative Region of China.
2  Former West Germany. 
3  For description of trade-weighted measures and economic groups, see
   the Technical Notes preceding these tables.
4  Organization for Economic Cooperation and Development.
5  Mexico joined the OECD in 1994, and Korea joined in 1996.

Source:  U.S. Department of Labor, Bureau of Labor Statistics, September
1998.

Wages in the European Periphery and in Austria:

        A       IRE     ITA     POR     SP      GR      
1975    100     67      104     35      56      37      
1980    100     67      92      23      66      42      
1985    100     78      101     20      61      48      
1990    100     66      98      21      64      38      
1993    100     59      78      22      58      36      
1994    100     58      74      21      54      36      
1995    100     54      64      21      51      36      
1996    100     56      72      23      55      39      
1997    100     62      76      24      55              


EU = 100

        A       ITA     IRE     POR     SP      GR      EU      
1975    90      93      60      31      50      34      100     
1980    90      83      61      21      60      38      100     
1985    97      97      75      19      59      47      100     
1990    104     102     68      22      67      40      100     
1993    111     87      66      25      64      40      100     
1994    113     83      65      24      61      41      100     
1995    116     75      62      25      59      42      100     
1996    113     81      63      26      62      44      100     
1997    108     83      67      26      60              100
        



(GNP per capita in US $) 'Social Indicators of Development'


        A       PL      POR     SPA     GRE     ITA     IRE     
1965    1270            460     690     710     1260    970     
1966    1390            500     790     780     1390    1040    
1967    1490            570     880     850     1530    1130    
1968    1610            650     960     950     1670    1220    
1969    1760            700     1050    1060    1830    1290    
1970    1950            790     1100    1170    1990    1350    
1971    2170            890     1220    1300    2140    1520    
1972    2580            1050    1470    1500    2430    1830    
1973    3360            1400    1930    1860    3050    2250    
1974    4360            1720    2520    2140    3700    2660    
1975    5150            1910    3000    2590    4020    3020    
1976    5560            2040    3180    2760    4180    2930    
1977    6160            2120    3370    2890    4430    3190    
1978    6980            2200    3730    3340    4980    3680    
1979    8850            2500    4620    4080    6380    4570    
1980    10660           2900    5660    4660    8010    5690    
1981    10400           2980    5770    4590    8220    6060    
1982    9590    1490    2830    5220    4230    7710    5710    
1983    8770    1680    2480    4500    3760    7140    5100    
1984    8630    1960    2220    4230    3620    7230    5000    
1985    8740    2020    2220    4200    3490    7480    4990    
1986    9980    2060    2700    4980    3720    8770    5640    
1987    12790   1980    3630    6540    4270    11340   7280    
1988    16860   2010    4830    8640    5250    14870   9050    
1989    17980   1990    5410    9770    5630    16050   9720    
1990    19310   1730    6100    11100   5960    17360   11030   
1991    20470   1840    7000    12420   6490    18810   11700   
1992    23170   1970    8630    14140   7350    21050   13010   
1993    23510   2260    9130    13590   7390    19840   13000   
                                                                
        A       PL      POR     SPA     GRE     ITA     IRE     
1965    100             36      54      56      99      76      
1966    100             36      57      56      100     75      
1967    100             38      59      57      103     76      
1968    100             40      60      59      104     76      
1969    100             40      60      60      104     73      
1970    100             41      56      60      102     69      
1971    100             41      56      60      99      70      
1972    100             41      57      58      94      71      
1973    100             42      57      55      91      67      
1974    100             39      58      49      85      61      
1975    100             37      58      50      78      59      
1976    100             37      57      50      75      53      
1977    100             34      55      47      72      52      
1978    100             32      53      48      71      53      
1979    100             28      52      46      72      52      
1980    100             27      53      44      75      53      
1981    100             29      55      44      79      58      
1982    100     16      30      54      44      80      60      
1983    100     19      28      51      43      81      58      
1984    100     23      26      49      42      84      58      
1985    100     23      25      48      40      86      57      
1986    100     21      27      50      37      88      57      
1987    100     15      28      51      33      89      57      
1988    100     12      29      51      31      88      54      
1989    100     11      30      54      31      89      54      
1990    100     9       32      57      31      90      57      
1991    100     9       34      61      32      92      57      
1992    100     9       37      61      32      91      56      
1993    100     10      39      58      31      84      55

        


http://www.ciesin.org/prod/charlotte

Synopsis (1997/1998):

        GNP per capita (A=100) wages(A=100)     
A       100     100     
IRE     81      62      
I       78      76      
SP      53      55      
GR      44      38      
POR     40      24      


Kind regards, Arno Tausch

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