In South America, the correlation between economic strength and minimum wage is very weak. Every country studied on the continent - excluding Guyana - has an annual minimum wage of at least 5,000 international dollars.
- The correlation coefficient between per capita Gross Domestic Product (GDP) in Purchasing Power Parity (PPP) and minimum wage in South America is 0.33.
- As economic strength increases in South America, the minimum wage does not necessarily increase.
- Guyana has both the lowest minimum wages on the continent as well as the smallest per capita GDP PPP.
- Chile has the largest per capita GDP PPP but the fourth highest minimum wage on the continent.
- Argentina on the other hand, has the highest minimum wage but only the third largest per capita GDP PPP.
- As always, correlation does not imply causation.
- Bolivia, French Guiana, Suriname, and Venezuela were missing data.
- Minimum wages sometimes vary by profession and other variables.
Excluding Argentina and Guyana, every other country on the continent has an annual minimum wage between 5,766 and 8,661 international dollars. Argentina's is 20,627 international dollars and Guyana's is 3,560.
South America is interesting because minimum wage is either set really low or extremely high for the output of the respective economy.
Per capita GDP PPP as a multiple of minimum wage, ranges from 0.97 in Argentina to 3.73 in Uruguay.
|AG||Antigua and Barbuda|
|KN||Saint Kitts and Nevis|
|TT||Trinidad and Tobago|
|VC||Saint Vincent and the Grenadines|
US Department of State. 2017. "Country Reports on Human Rights Practices for 2016." Accessed September 2, 2017. https://www.state.gov/j/drl/rls/hrrpt/humanrightsreport/index.htm#wrapper.