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Structural Transformation of Employment and Wage Inequality in the High Growth Regime: A Study with Micro-Level Data in India

In: Indian Economy: Reforms and Development

Author

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  • Panchanan Das

    (University of Calcutta)

Abstract

This study explores how inequality in wage income is associated with workers’ human capital and employment status during the high growth regime that started in the early 1980s in India, with household and personal-level information from employment and unemployment survey. The study observes that ‘within’ group inequality declined very slowly, but the ‘between’ group inequality increased markedly during this period. Conditional wage earnings at different quantiles have been estimated to locate the possible effects of human capital, particularly education and employment characteristics. The study observes that the wage gap between workers at different percentiles increased over time during the high growth regime, and at a higher rate at the upper end of the wage distribution. The workers’ schooling has favourable effect on wage income as expected. Wage income is increased with higher level of education at a higher proportional rate at higher percentiles in the wage distribution. As returns to education have significant impact on wage income, the wage distribution became more unequal because of the difference in access to education.

Suggested Citation

  • Panchanan Das, 2019. "Structural Transformation of Employment and Wage Inequality in the High Growth Regime: A Study with Micro-Level Data in India," India Studies in Business and Economics, in: Pradip Kumar Biswas & Panchanan Das (ed.), Indian Economy: Reforms and Development, chapter 0, pages 189-206, Springer.
    • Handle: RePEc:spr:isbchp:978-981-13-8269-7_10
    DOI: 10.1007/978-981-13-8269-7_10
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