Global Trends of Wage and Income Inequality: Lessons for Nigerian Employers’ and Economy Planners

Abstract

This study examined global trends of wage and income inequality from 2006 to 2013, using International Labour Organisation (ILO) World Wage Report of 2014/2015 as benchmark. A comparative analysis of wage and income gaps between Nigeria/Africa and other emerging economies was also examined. We were concerned with wage and income growth among developing and advanced countries. Findings revealed that, from 2006 to 2013, Nigeria and indeed Africa experienced the least wage/income growth as compared to other emerging economies and G20 nations. The study further showed the unprecedented wage gaps that exist in Nigeria and how such inequality is negatively affecting the socio-economic and politic fabrics of the country. It shows that wage and income inequality obstruct medium and long-term economic growth. It is also an obstacle to social cohesion and workers wellbeing. The paper from its findings provided specific lessons for Nigerian employers, economy planners and government. Policy option was therefore suggested as a panacea to reducing wage and income inequality in Nigeria and elsewhere in Africa.