The evolution of wage differentials in Singapore

Abstract

78 p.For the past thirty years, Singapore has experienced major structural change and economic growth. With the population being her main resource, the government has focused considerable attention on the labour market and its wage structure. In this applied research project, we analysed the evolution of wage differentials from 1979 to 1994 in hopes of understanding the effect these changes have on the people in terms of income distribution. From the data found in the annual Reports on the Labour Force of Singapore, we computed the average monthly income of employed persons by education attainment, occupational group, sector and gender. Using wage differential ratios, real average earnings growth rates and other indicators, we have concluded that wage differentials are indeed narrowing from 1979-1994 with respect to educational attainment, occupational groups, sectors and gender. Hence, it is an indication that income distribution in Singapore is improving in terms of wage levels.ACCOUNTANC