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Inter-industry Wage Differentials in Indian Manufacturing: Convergence or Persistence?

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  • Tandon, Anjali

Abstract

From a labour perspective, wage rates are reflective of the market demand for different skills and the institutional structures. Also, wage rate is a better measure of the well-being of workers solely dependent on wage income. This paper notes persistent regularity in industry-level wage rates confirming the absence of a convergence behaviour. The stability of industry-level wage rates brings industrial reforms under scanner for their implications on worker welfare. Wage convergence could be inhibited by the inter-industry movement of workers. One way to counter the proliferation of low-wage employment can be improved inter-industry worker movement through better adaptability of workers.

Suggested Citation

  • Tandon, Anjali, 2021. "Inter-industry Wage Differentials in Indian Manufacturing: Convergence or Persistence?," MPRA Paper 114622, University Library of Munich, Germany, revised 2022.
    • Handle: RePEc:pra:mprapa:114622
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    File URL: https://mpra.ub.uni-muenchen.de/114622/1/MPRA_paper_114622.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Convergence; wage rates; factory sector; non-factory sector; work-based credits; worker welfare;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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