IDEAS home Printed from https://ideas.repec.org/a/ovi/oviste/v11y2011i1p1966-1970.html
   My bibliography  Save this article

Rising Wage Inequality in India: a Translog Cost Function Analysis

Author

Listed:
  • Srivastava Archana

    () (Indian Institute of Technology, Kanpur, India)

Abstract

The paper attempts to investigate the various determinants of rising wage inequality in India since 1980s. A translog cost function along with the share equations is used to evaluate the impact of various factors such as trade, technology, liberalization phase, efficiency (technical, allocative and cost) and inflation on rising wage inequality between the skilled and unskilled labour. Seemingly unrelated regressions (SUR) procedure by Zellner is used for the estimation purpose. Annual Survey of Industries data at the two digit level from the year 1973-74 to 2007-08, has been used for the study. The findings reveal that trade and technology both tend to increase the wage inequality. Further, elasticity results reveal that capital, skilled labour, unskilled labour etc have turned out to be, substitutes since 1989, although few of them were complementary before the liberalisation phase.

Suggested Citation

  • Srivastava Archana, 2011. "Rising Wage Inequality in India: a Translog Cost Function Analysis," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 1966-1970, May.
  • Handle: RePEc:ovi:oviste:v:11:y:2011:i:1:p:1966-1970
    as

    Download full text from publisher

    File URL: http://stec.univ-ovidius.ro/html/anale/RO/cuprins%20rezumate/rezumate2011p1.pdf
    Download Restriction: no

    More about this item

    Keywords

    Translog Cost Function; Seemingly Unrelated Regressions; Wage Inequality; Trade; Efficiency;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ovi:oviste:v:11:y:2011:i:1:p:1966-1970. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gheorghiu Gabriela). General contact details of provider: http://edirc.repec.org/data/feoviro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.