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Wage Discrimination In India’S Formal And Informal Labor Markets

Author

Listed:
  • BHASKAR JYOTI NEOG

    (Department of HSS, IIT Kharagpur, India)

  • BIMAL KISHORE SAHOO

    (Department of HSS, IIT Kharagpur, India)

Abstract

The study examines the extent of gender- and caste-based discrimination among the formally and informally employed in India using the National Sample Survey Office (NSSO) Employment-Unemployment Survey (EUS) data for the four major rounds from 1999–00 to 2011–12. Oaxaca-Blinder decomposition results corrected for self-selection show wage discrimination to be significantly higher in informal employment compared to the formally employed. Similarly, caste-based discrimination is found to be lower compared to gender-based discrimination. The quantile decomposition results show discrimination to vary across the quantiles. Our results highlight the need for better regulation of the informal labor market in India.

Suggested Citation

  • Bhaskar Jyoti Neog & Bimal Kishore Sahoo, 2023. "Wage Discrimination In India’S Formal And Informal Labor Markets," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 68(01), pages 243-263, March.
    • Handle: RePEc:wsi:serxxx:v:68:y:2023:i:01:n:s021759081950019x
    DOI: 10.1142/S021759081950019X
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    More about this item

    Keywords

    Gender; caste; discrimination; decomposition; quantile; informal; regulation;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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