"Spain has low wages because it produces little"

It explains an important part of the gap. It does not make it the only cause.

Spain produces per hour 76% of the euro zone and pays 25.5 EUR/h.

Germany produces more per hour and also pays significantly more: 43.4 EUR/h. The relationship exists, but it does not work as a total and automatic explanation.

Productivity vs euro zone

76%

Euro zone index = 100

Cost per hour in Spain

25.5 EUR

EU average: 33.5 EUR

Spain vs Germany

63%

Relative productivity

Productivity per hour (euro zone = 100)

i

What the data actually says

1 When an economy produces less value per hour, it tends to sustain lower hourly wages.

2 "Produces little" does not exhaust the full explanation: sector structure, wage bargaining, and employment quality also matter.

The correct statement is not "wages are low only because of productivity" but "productivity explains an important part of the gap".

Summary comparison

Country Cost per hour Productivity
Alemania 43.4 EUR 132
Francia 43.7 EUR 110
Italia 30.9 EUR 95
Espana 25.5 EUR 76
Portugal 18.5 EUR 68

Related links