[ivix]

Living standards would become averaged globally. Result: Rich people (thats you and me) get a lot poorer. But on average people get richer.

[icebraining]

Why? If hiring costs the same everywhere, companies would probably relocate back to the developed countries for other reasons (less shipping, better justice systems, etc), while the developing countries would face massive unemployment.

If anything, it'd make poor people much poorer and increase worldwide inequality.

Not to mention that such countries would have new "castes", between the relatively well paid employed and the majority of unemployed or black market workers, leading to more social instability.

[PeterisP]

Assuming what the parent said (minimum wage of $7 everywhere, without solving other problems), it really would not. The local labor market in USA or EU wouldn't change - the laws are already there.

But actually enforcing minimum wage of $7/hour in developing countries would mean what?

If most employees are making $1/hour, and the businesses there don't have 700% profit margins, then (at least initially) they can't pay such salaries. So many of them close up shop and fire everyone. Unemployment rises, and, having almost no welfare support, the people grow hungry. They want to work, so they bunch up, start a business, earn a nice profit that amounts to $2/hour/person and.... the government comes in and breaks down the business for minimum wage violations. Is that what you want when you say "minimum wage of $7/hour globally" ?

Or do you have any other specific way to achieve "global minimum wage laws" in a significantly better way than making the laws and enforcing?

If it involves finding somebody to donate the ($7-$1) * billions people / hour wage difference, then I'd like a pony for every kid in the world while we're at it. And even actually finding such a donor would simply mean inflation, the new $7 buys the same as old $1, and we're back where we started.