Degree holders’ pay in 1971?
Thanks to our CPF insider ES for alerting us to the article ” Problem of social tension and unequal earnings” (Straits Times, Sep 18, 1971) – the starting pay of a pass degree holder executive officer in the civil service was $465 in 1971.
From our previous analysis of university graduates starting pay – we estimate that starting pay was about $2,700 in 2006.
Pay grew 5% p.a.?
So, we estimate the pay increase from 1971 to 2006 was about 5% per annum.
Since we estimate inflation from 1971 to 2006 to be about 2% per annum (the Department of Statistics inflation table only goes back to 1980) – the real increase was about 3% per annum.
Pay dropped – 1.7% p.a?
In contrast, real starting pay decreased by about minus 1.7% from 2006 to 2013.
The end of our “golden age”?
Thus, the “golden age” of Singapore’s “income” growth may have ended around 1999.
This we believe coincides with the huge influx of foreign workers since around 1998.
S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the 4th Return Our CPF protest on 27 September 4 pm at Speakers’ Corner https://www.facebook.com/events/516436478486589/