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The Effect of Information Technology on Wage Inequality: Evidence from Indian Manufacturing Sector

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  • Vinoj Abraham

Abstract

A persistent widening of skill based wage inequality in the Indian Organised Manufacturing sector has been reported by many researchers. Two main hypotheses had been tested in developed economies to explain such a phenomenon; an inter-sectoral shift in demand structure and an intra-sectoral shift in production technology. A decomposition of the change in wage share of skilled workers showed that sector bias explained very little of the changes in the share of skilled worker wages while more than 85 percent of the changes occurred within industries, giving support to the argument of changing skill mix within industries, rather than between industries. [Working Paper No. 437]

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  • Vinoj Abraham, 2010. "The Effect of Information Technology on Wage Inequality: Evidence from Indian Manufacturing Sector," Working Papers id:3180, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3180
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    References listed on IDEAS

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    Cited by:

    1. Soumyatanu Mukherjee, 2015. "Input Trade Liberalisation and Wage-inequality with Non-traded Goods," Discussion Papers 2015-05, University of Nottingham, CREDIT.
    2. Mukherjee, Soumyatanu, 2016. "Technology, trade and ‘urban poor’ in a general equilibrium model with segmented domestic factor markets," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 400-416.
    3. Soumyatanu Mukherjee, 2016. "Opening the Pandora's Box – Liberalised Input Trade and Wage Inequality with Non-traded Goods and Segmented Unskilled Labour Markets," Discussion Papers 2016-15, University of Nottingham, GEP.
    4. Mukherjee, Soumyatanu & Zafar, Sameen, 2014. "Technological progress with segmented factor markets and welfare implications for the urban poor," MPRA Paper 55297, University Library of Munich, Germany.
    5. M. R. Aneesh, 2018. "Changes in Wage Trends and Earnings Differences in Kerala," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(4), pages 623-638, December.
    6. Mukherjee, Soumyatanu, 2017. "Input trade reform and wage inequality," International Review of Economics & Finance, Elsevier, vol. 51(C), pages 145-156.

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    Keywords

    Skill Biased Technological Change; Wage Inequality; Information Technology; Indian Manufacturing sector;
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