Quite often we feel the need for comparing wages in different countries when one is engaging with a global talent pool.
We face this need when we evaluate the costs of setting up a development centre in Australia or when we are discussing with a potential hire who is then based out of India. In such scenarios, purchasing power parity is a useful concept to make wage comparisons across different countries meaningful. It might be a slightly crude approach but it can be useful when you are looking for ball parks or quick evaluations.