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Employment Change in Occupations in Urban India: Implications for Wage Inequality

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  • Sudipa Sarkar

Abstract

This article analyses employment and wage change patterns in India for a period spanning almost three decades, from 1983–84 to 2011–12. Using data from the National Sample Survey Organization, the study finds evidence of job polarization (employment growth in low‐ and high‐skill jobs and decline in middle‐skill jobs) in urban India during the 1990s and 2000s, and employment upgrading in the 1980s. Consistent with the literature on job polarization, the article finds a reduction in employment share in routine task intensive occupations. The author argues that this reduction is a result of both mechanization and technological upgrading within Indian industry. On the other hand, an increase in employment share in both low‐skill and high‐skill occupations is argued to be a result of growing self‐employment and informal sector employment in urban India. The wage change patterns are largely consistent with the employment change patterns. The analysis suggests that structural change in occupation is an important factor for understanding earnings inequality in India.

Suggested Citation

  • Sudipa Sarkar, 2019. "Employment Change in Occupations in Urban India: Implications for Wage Inequality," Development and Change, International Institute of Social Studies, vol. 50(5), pages 1398-1429, September.
    • Handle: RePEc:bla:devchg:v:50:y:2019:i:5:p:1398-1429
    DOI: 10.1111/dech.12461
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    Cited by:

    1. Khurana, Saloni & Mahajan, Kanika & Sen, Kunal, 2023. "Minimum Wages and Changing Wage Inequality in India," IZA Discussion Papers 16600, Institute of Labor Economics (IZA).
    2. Saloni Khurana & Kanika Mahajan, 2020. "Evolution of wage inequality in India (1983-2017): The role of occupational task content," WIDER Working Paper Series wp-2020-167, World Institute for Development Economic Research (UNU-WIDER).
    3. Antonio Martins-Neto & Nanditha Mathew & Pierre Mohnen & Tania Treibich, 2021. "Is There Job Polarization in Developing Economies? A Review and Outlook," CESifo Working Paper Series 9444, CESifo.
    4. Rahul MENON, 2021. "Determinants of inequality in Indian regular wage employment, 1993–2012," International Labour Review, International Labour Organization, vol. 160(3), pages 477-500, September.

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