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Declining wage share in India’s organized manufacturing sector trends, patterns and determinants

Author

Listed:
  • Abraham, Vinoj.
  • Sasikumar, S. K.

Abstract

Widening income inequality across the world in recent years has emerged as a core concern in development policy discourses. A persistent decline in labour share has been visible in many developed and developing economies since the 1980s, including India. Declining labour share in terms of wages and emoluments portends widening income inequality, demand constriction and slowdown of economic growth. The study analyses the patterns, trends and determinants of declining labour share in organized manufacturing in India. It undertakes a comprehensive analysis of the trends and patterns in factor payments in the organized manufacturing sector, while long-term trends are explored across dimensions such as states, size classification and industrial classification.

Suggested Citation

  • Abraham, Vinoj. & Sasikumar, S. K., 2017. "Declining wage share in India’s organized manufacturing sector trends, patterns and determinants," ILO Working Papers 994975392702676, International Labour Organization.
    • Handle: RePEc:ilo:ilowps:994975392702676
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    Citations

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    Cited by:

    1. M Parameswaran, 2021. "Trade Openness and Labour Market Unrest: Evidence from Indian Manufacturing Industry," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(2), pages 345-373, June.
    2. Anwesha Basu & C. Veeramani, 2021. "Labour share in Indian economy: An Exploratory analysis of the role of trade, technology and structural transformation," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-027, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Weilin Liu, 2022. "Did Trade Liberalization Boost Total Factor Productivity Growth in Manufacturing in India in the 1990s?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 43, pages 110-139, Fall.
    4. Kanupriya Jain & Piyali Ghosh & Shankha Shuvra Misra, 2023. "The Future of Fixed-term Employment in India," Vikalpa: The Journal for Decision Makers, , vol. 48(2), pages 87-99, June.
    5. Jagannath Mallick, 2020. "Does Global Economic Integration affect Labour Income Share in India?," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 291-309, June.
    6. Nataraj, Manikantha & Bhattacharya, Soham, 2020. "Bitter Convergence: Contemporary Crisis of Labour in Rural West Bengal," MPRA Paper 103363, University Library of Munich, Germany.
    7. 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.
    8. Manikantha Nataraj & Soham Bhattacharya, 2023. "Bitter Convergence: Contemporary Crisis of Labour in Rural West Bengal," BASE University Working Papers 17/2023, BASE University, Bengaluru, India.
    9. Jacob, Tinu Iype & Paul, Sunil, 2024. "Labour income share, market power and automation: Evidence from an emerging economy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 37-45.

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