# **Annex 1: Hourly Rate Estimates**

The direct and indirect employment generation estimates are higly sensitive to assumptions regarding wages. Wages in the construction sector, as a benchmark, vary significantly across the countries. The following tables present these figures for several countries. For those in South America, the range in wages in this sector is between $1.39 and $4.28 per hour, excluding benefits. The (unweighted) average of these wages is $2.55 per hour. In general, benefits packages are significantly heterogeneous in the region but roughly they are 30 percent in top of the net salary. Using this assumption, we obtain a gross salary of $3.31 per hour without including other indirect labor costs that are much harder to estimate. Thus, for the purposes of the estimates, we assumed a standardized value of $3.00 per hour that includes all the related direct labor costs such as health and pension packages.

**Table A1: Minimum Wages and Average Wages in the Whole Economy and in the Construction** **<u>Sector – South America.</u>**

||**Year of**<br>**Reference**|**Minimum**|**Average**<br>**Hourly**|**Construct.**|**Minimum**|**Average**<br>**Daily**|**Construct.**|**Minimum**|**Average**<br>**Monthly**|**Construct.**|
|---|---|---|---|---|---|---|---|---|---|---|
|Argentina|2007|**1.29**|n.a.|n.a.|**10.34**|n.a.|n.a.|**258.43**|n.a.|n.a.|
|Bolivia|2007|**0.42**|n.a.|**1.39**|**3.34**|n.a.|**11.14**|**66.87**|n.a.|**222.77**|
|Brazil|2009|**1.33**|n.a.|**2.92**|**10.67**|n.a.|**23.39**|**213.30**|n.a.|**467.89**|
|Chile|2006|**1.59**|n.a.|**3.18**|**12.73**|n.a.|**25.41**|**254.58**|n.a.|**508.29**|
|Colombia|2007|**1.30**|**1.98**|**1.64**|**10.43**|**15.82**|**13.13**|**208.68**|**316.49**|**262.68**|
|Ecuador|2007|**0.75**|n.a.|**1.06**|**6.00**|n.a.|n.a.|**120.00**|n.a.|n.a.|
|Mexico|2007|**0.61**|**2.70**|**3.39**|**4.88**|**21.63**|**6.62**|**97.60**|**432.69**|**546.91**|
|Peru|2007|**1.00**|n.a.|**4.28**|**5.33**|n.a.|**12.22**|**159.85**|n.a.|**685.34**|
|Uruguay|2007|**0.82**|n.a.|n.a.|**6.55**|n.a.|n.a.|**131.01**|n.a.|n.a.|
|Venezuela|2007|**1.79**|n.a.|n.a.|**9.54**|n.a.|n.a.|**286.35**|n.a.|n.a.|
|Avg South America||**1.09**|**2.34**|**2.55**|**7.98**|**18.73**|**15.32**|**179.67**|**374.59**|**448.98**|

**Table A2: Minimum Wages and Average Wages in the Whole Economy and in the Construction** **<u>Sector – Central America and the Caribbean.</u>**

||**Year of**<br>**Reference**|**Minimum**|**Average**<br>**Hourly**|**Construct.**|**Minimum**|**Average**<br>**Daily**|**Construct.**|**Minimum**|**Average**<br>**Monthly**|**Construct.**|
|---|---|---|---|---|---|---|---|---|---|---|
|Costa Rica|2007|**1.04**|**2.36**|**1.68**|**8.31**|**18.92**|**13.47**|**166.15**|**378.34**|**269.45**|
|Cuba|2006|**1.52**|**2.61**|n.a.|**12.15**|**20.90**|n.a.|**243.01**|**417.97**|n.a.|
|Dominican Rep.|2004|**0.24**|**0.99**|**1.74**|**1.90**|**7.92**|**13.94**|**37.99**|**158.33**|**278.75**|
|El Salvador|2007|**0.65**|**1.55**|**1.42**|**5.16**|**12.37**|**11.37**|**103.20**|**247.40**|**227.30**|
|Guatemala|2006|**0.74**|**1.73**|n.a.|**5.92**|**13.80**|n.a.|**118.38**|**276.02**|n.a.|
|Nicaragua|2007|**0.24**|**1.75**|**0.37**|**1.94**|**14.02**|**2.95**|**38.88**|**280.36**|**89.81**|
|Panama|2007|**0.89**|**2.30**|**2.00**|**7.12**|**18.40**|**16.00**|**142.40**|**368.00**|**320.00**|
|CA and the Caribe||**0.76**|**1.90**|**1.44**|**6.07**|**15.19**|**11.55**|**121.43**|**303.78**|**237.06**|

Note: The subregional averages correspond to the simple averages across the countries in the the group with available information.

Source: Authors’ calculation based in ILO’s documents and several country sources.

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