Wage Transparency: New Frame

Wage inequality thrives on secrecy. Members of society have some insights: some positions pay minimum wage, teacher and government salaries are public information, and annual reports disclose CEO salaries and benefits. It’s no coincidence that Norway, Sweden and Finland are societies with greater equality and “every taxpayer’s annual income and tax payments are transparent,” explains Carlos Amato for New Frame. Scandinavian tax authorities have published incomes since the 18th century. Norway launched its online database in 2001, with anonymous searches allowed. Then in 2012, the database required log-ins with notification to targets, prompting a steep decline in searches. Analysts in South Africa debate the need for transparency, with one noting that Scandinavia’s high taxes and redistribution reduce inequality rather than inequality. Amato concludes that societies could first target those who fail to pay taxes. – YaleGlobal

Wage Transparency: New Frame

Norway, Finland, Sweden post all salaries in online national database; economists debate whether South Africa and other nations could benefit from transparency
Carlos Amato
Saturday, February 1, 2020

Read the article from New Frame about income inequality.

Carlos Amato is an editorial cartoonist, writer and illustrator living in Johannesburg, with a focus on sport, culture and politics. He has degrees in literature and animation, used to edit the Sunday Times Lifestyle magazine and is the author of Wayde van Niekerk: Road to Glory (Jonathan Ball, 2018).

This article was first published by New Frame.

Income Share Held by Top 10% S Africa 50% Brazil 42% Philippines 35% US 31% India 30% Indonesia 30% China 29% Pakistan 29% Australia 28% Bangladesh 27% France 27% UK 25% Canada 25% Germany 25% Japan 25% Denmark 24% Sweden 23% Finland 22% Norway 22% Belgium 22%

(Source: World Bank)

- No evidence of reduced inequality or higher wages - Skills and experience within a field can vary - Variation is not wide for many low-skilled jobs - High earners express more pride than shame - Few people think they are overpaid and most feel under-paid - Transparency could hike bonuses, benefits, other compensation - Workers can become resentful

(Source: Carlos Amato and Monster.com)

New Frame
Related Links: 

Quartz: US Sets Bad Example on Inequality

Income Inequality: Too Big to Ignore

Capitalists, Arise: We Need to Deal With Income Inequality

BBC: Finland’s Basic Income Trial Falls Flat

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