3 ms·
Is GDP per capita really a good proxy for labor costs?
by brookst 3mo ago
Is GDP per capita really a good proxy for labor costs?
- dijit 3mo agoit can be, if you control with the Geni coefficient. However large parts of many countries is rural, and different amounts for different countries, and that tends cause control issues. But in general, a low Geni coefficient and a high GDP per capita means labour costs are high.
- roenxi 3mo agoYep. https://ourworldindata.org/grapher/median-daily-per-capita-expenditure-vs-gdp-per-capita https://ourworldindata.org/grapher/median-daily-per-capita-e... for example. Although note the log-log axis which undersells the gaps between countries.