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Occupational Pattern, Wage Rates and Earning Disparities in India: A Decomposition Analysis

Author

Listed:
  • MUKHERJEE, DIPA

    (Narasinha Dutt College, Howrah, West Bengal,)

  • MAJUMDER, RAJARSHI

    (University of Burdwan, West Bengal)

Abstract

Inequalities in livelihood among socio-economic groups are caused by disparities in job availability, type and sector of employment and earnings there from, and transcend the boundaries of current generation through their impact on capability formation. This paper explores issues of occupational distribution, wage rates, and total earnings in the Indian labour market over the last decade across social classes, regions, gender, and job types. The relative roles played by discrimination during entry and wage setting, and that by endowment in explaining the occupational and earning disparities have been examined through Decomposition technique. The findings suggest increasing disparities in recent times caused by both Discrimination and Endowment gaps.

Suggested Citation

  • Mukherjee, Dipa & Majumder, Rajarshi, 2011. "Occupational Pattern, Wage Rates and Earning Disparities in India: A Decomposition Analysis," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 46(1), pages 131-152.
    • Handle: RePEc:dse:indecr:0034
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    Citations

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    Cited by:

    1. Deshpande, Ashwini & Goel, Deepti & Khanna, Shantanu, 2018. "Bad Karma or Discrimination? Male–Female Wage Gaps Among Salaried Workers in India," World Development, Elsevier, vol. 102(C), pages 331-344.
    2. Kajari Saha, 2021. "The China trade shock and the gender wage gap in India: A District-level analysis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-012, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Satinder Singh & J. K. Parida & I. C. Awasthi, 0. "Employability and Earning Differentials Among Technically and Vocationally Trained Youth in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 0, pages 1-24.
    4. Soumyajit Chakraborty & Alok K. Bohara, 2021. "The Cost of Being ‘Backward’ in India: Socio-religious Discrimination in the Labour Market," Indian Journal of Human Development, , vol. 15(2), pages 252-274, August.
    5. Rajarshi Majumder, 2023. "The Employment Challenge in India: Hundred Years from ‘Ten days that shook the World’," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 37-59, March.
    6. Pallavi Gupta & Satyanarayan Kothe, 2021. "Interpreting the Caste-based Earning Gaps in the Indian Labour Market: Theil and Oaxaca Decomposition Analysis," Papers 2110.06822, arXiv.org.
    7. Amrita Datta & Tanuka Endow & Balwant Singh Mehta, 2020. "Education, Caste and Women’s Work in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 387-406, June.
    8. 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.
    9. Shiney Chakraborty, 2020. "Gender Wage Differential in Public and Private Sectors in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(3), pages 765-780, September.
    10. Satinder Singh & J. K. Parida & I. C. Awasthi, 2020. "Employability and Earning Differentials Among Technically and Vocationally Trained Youth in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 363-386, June.
    11. K.P. Kannan, 2019. "Wage Inequalities in India," Working Papers id:12990, eSocialSciences.
    12. Panchanan Das & Sumita Biswas, 2022. "Social Identity, Gender and Unequal Opportunity of Earning in Urban India: 2017–2018 to 2019–2020," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(1), pages 39-57, March.
    13. Sonu Madan & Manisha Yadav, 2022. "Decomposing Skill Based Wage Inequality in India: An Application of Theil Index," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 967-979, December.
    14. Lama, Sita & Majumder, Rajarshi, 2018. "Gender inequality in wage and employment in Indian labour market," MPRA Paper 93319, University Library of Munich, Germany.

    More about this item

    Keywords

    Market; Gender Gap; Social Exclusion; Occupational Choice; Wage Decomposition; Discrimination;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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