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Growth, employment patterns and inequality in Asia a case study of India

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  • Chandrasekhar, C. P.
  • Ghosh, Jayati.

Abstract

This paper argues that economic inequalities in India have been driven by employment patterns and changes in labour markets, which in turn have been affected by macroeconomic policies and processes as well as forms of social discrimination and exclusion. While many Asian economies have shown indications of rising inequality in recent decades, the Indian experience is particularly remarkable in the way inequalities have intertwined with the economic growth process. Structural change (or the relative lack of it) and the persistence of low productivity employment in India are strongly related to falling wage shares of national income and growing wage inequalities, and the close relationship between formal and informal sectors is the sharpest exemplar of this. Patterns of social discrimination along gender and caste lines have reinforced tendencies to create segmented labour markets that offer little incentive for employers to focus on productivity improvements.

Suggested Citation

  • Chandrasekhar, C. P. & Ghosh, Jayati., 2014. "Growth, employment patterns and inequality in Asia a case study of India," ILO Working Papers 994869853402676, International Labour Organization.
    • Handle: RePEc:ilo:ilowps:994869853402676
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    References listed on IDEAS

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    1. Thorat, Amit, 2010. "Ethnicity, Caste and Religion: Implications for Poverty Outcomes," MPRA Paper 43030, University Library of Munich, Germany.
    2. Swaminathan, Madhura & Rawal, Vikas, 2011. "Is India Really a Country of Low Income-Inequality? Observations from Eight Villages," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 1(1), July.
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    Cited by:

    1. Peter Lanjouw & Hai-Anh Dang, 2018. "Inequality trends and dynamics in India: The bird’s-eye and the granular perspectives," WIDER Working Paper Series 189, World Institute for Development Economic Research (UNU-WIDER).
    2. Hai‐Anh H. Dang & Peter Lanjouw, 2018. "Inequality trends and dynamics in India: The bird's-eye and the granular perspectives," WIDER Working Paper Series wp-2018-189, World Institute for Development Economic Research (UNU-WIDER).

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