In the pay table, Argentina is only going down | …

The minimum wage measured in dollars records in the direction of Change a fall of 49%. Most of this decline is explained by the devaluation of 2018, which largely outpaced the revenue trend. Since the end of 2015, the minimum wage has risen from 580 to 297 dollars, which has caused Argentina to lose 5 places in the regional ranking, from the first to the sixth position of the minimum wage measured in dollars. Economists from the University of Avellaneda. With the latest increase applied in March, the minimum wage in Argentina was nearly $ 160 less than Uruguay and Chile, which is at the top of the ranking. Contrary to what happened in the national economy, during the Cambiemos government period, the minimum wage in dollars increased in Uruguay, Chile, Ecuador, Paraguay, Bolivia and Peru. , Colombia and Brazil. The other country that has had a negative result with Argentina is Venezuela. During the past year, the minimum wage measured in dollars has decreased in most countries of the region, although in Argentina, this decline was 37%, much higher than the rest, exceeded only by Venezuela ( -40%). . Specialists warn that the decline in wages in dollars implies a deterioration in the distribution of income. They also point out that the dollar wage has a relative impact on improving export competitiveness, although it instead translates into recessive effects that ultimately have a downward impact. on imports (see separate note).

The minimum wage, vital and mobile (SMVM) is the legal threshold for the wages of workers in a relationship of dependency. This is not a value that automatically affects pay, but it does so by setting a higher or lower threshold for collective bargaining. The SMVM is defined by the Salary Council, which brings together government officials, unions and business entities. In order to react somewhat to the economic crisis, the government decided to advance the last quota of minimum wage increase for early March (the increase was scheduled for June), from 11,900 to 12,500 pesos.

In nominal terms, the SMVM increased by 123% during the management of Cambiemos from 5,588 to 12,500 pesos. This figure in itself reflects a deterioration in the purchasing power of the minimum wage, if account is taken of the fact that the accumulated inflation during this period in the employee baskets of consumption is 173% according to the measurement of the UMET. But in addition, the SMVM has been delayed compared to the poverty line. The latest statistics from Buenos Aires show that in January 2016, two minimum wages of 6060 pesos were used to buy 1.2 times the basic basket that allowed not to be poor in income to a household consisting of two adults economically active, homeowners housing and two children. In November 2018, two minimum wages of 10,700 pesos (21,400 in total) were sufficient to obtain 70% of the poverty basket of 30,818 pesos corresponding to the same household.

Along with the loss of purchasing power in pesos salary, the badessment of income in terms of "hard currency" allows to adapt to the national situation at the regional level. In November 2015, the SMVM was at 5588 pesos, which was equivalent to 589 dollars and the dollar 9.5 pesos. At that time, Argentina held a very comfortable leading position vis-à-vis other countries, followed by Ecuador and Chile, with minimum wages of $ 354 and $ 352, respectively. Part of this huge difference (more than $ 200) with the second and third positions is explained by the official "cheap" dollar at 9.50 pesos sold with restrictions, as opposed to the "blue" dollar at 16 pesos, defined by a small opaque market. The sharp devaluation of December 2015 and subsequent exchange rate stability, as well as increases in the SMVM, reduced the minimum wage to $ 501 in December 2017. At that time, it was still at the top of the regional ranking. , 75 dollars against the minimum wage of 425 dollars from Chile and Uruguay.

With the devaluation of last year, the minimum wage in Argentina fell to $ 297, or $ 457 in Uruguay, $ 456 in Chile, $ 394 in Ecuador and $ 348 in Paraguay. Below Argentina are Peru (281 dollars), Colombia (262) and Brazil (261), and finally Venezuela with a minimum wage of 5 dollars. The International Labor Organization (ILO) sees the SMVM as one of the tools to reduce wage inequality.