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El Salvador Table of Contents

El Salvador

Income Distribution

Moderate economic growth in 1987 did not make up for the uneven income distribution in El Salvador. Poorer segments of the population did not share in the modest gains of the economy in 1987. In the agricultural sector, for example, the minimum wage remained unchanged at c8 (for value of the colon--see Glossary) per eight-hour day; at the same time, inflation, as measured by the consumer price index, rose by 27 percent during the first half of 1987. Real wages in both the private and the public sectors continued their precipitous descent to 13.3 percent in 1987. In 1987 private sector monthly wages averaged approximately C889. Although no current measure of income distribution was available in mid-1988, the combination of negative wage gains and positive aggregate growth implied a worsening of income distribution between employers and labor.

Data as of November 1988