Why are wages low in developing countries

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These days, we can meet the foreign laborers` problems such as delayed payment of wages, industrial disasters and so on. Regardless of the poor working environment, the number of foreign laborers shows a yearly increase. Why they come to our country in spite of these conditions? The low wage of developing countries might be the basic reason of this phenomenon. They come to Korea because the wage in our country is relatively higher than that of their nations. Then why are wages low in developing countries?

The first reason for the low payment is strongly related to the law of supply and demand. Developing countries have great size of population, however, few employments. In other words, demand curve for occupation inclines toward left side compare to other countries. On the other hand, supply curve leans to right side. Decrease in equilibrium price, finally causes low wage.

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