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



    (Narasinha Dutt College, Howrah, West Bengal,)


    (University of Burdwan, West Bengal)


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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    Cited by:

    1. repec:eee:wdevel:v:102:y:2018:i:c:p:331-344 is not listed on IDEAS
    2. 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.

    More about this item


    Market; Gender Gap; Social Exclusion; Occupational Choice; Wage Decomposition; Discrimination;

    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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