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Gender segregation and wage differentials in India: the role of educational attainment and occupational choices

Author

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  • Tushar Agrawal

Abstract

Purpose - The purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap. Design/methodology/approach - The author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap. Findings - The results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas. Originality/value - While much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation.

Suggested Citation

  • Tushar Agrawal, 2020. "Gender segregation and wage differentials in India: the role of educational attainment and occupational choices," International Journal of Manpower, Emerald Group Publishing Limited, vol. 42(1), pages 1-20, June.
    • Handle: RePEc:eme:ijmpps:ijm-10-2019-0466
    DOI: 10.1108/IJM-10-2019-0466
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    Cited by:

    1. Mahalia Jackman & Kishmar Lorde, 2021. "Gaps in the (paid) work hours of male and female heads of households: empirical evidence from Barbados," International Journal of Manpower, Emerald Group Publishing Limited, vol. 42(7), pages 1321-1337, January.

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