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Wage Inequality

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  • Borooah, Vani

Abstract

This chapter considers wage inequality in India at a point in time (2011–12) with particular reference to inequality in wages between male and female workers and between workers from different social groups — the Scheduled Tribes, the Scheduled Cates, the non-Muslim Other Backward Classes, Muslims, and the Forward Castes. The thrust of the analysis in this chapter is to decompose the difference in wages between men and women, and between the Forward Castes and the other social groups, into a part that can be “explained” by employer bias and that which is due to differences in employee attributes. The analysis of this chapter extends earlier analyses of wage inequality in India to include social groups; methodologically, it seeks an explanation for inter-group inequality in terms of employer bias and (differences in) employee attributes. The analysis in this chapter uses data from two independent sources to analyse the phenomenon of inter-group wage inequality: the 68th round of the National Sample Survey pertaining to the period July 2011–June 2012 and the Indian Human Development Survey pertaining to 2011.

Suggested Citation

  • Borooah, Vani, 2019. "Wage Inequality," MPRA Paper 101470, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101470
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    References listed on IDEAS

    as
    1. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    2. repec:pru:wpaper:29 is not listed on IDEAS
    3. Kijima, Yoko, 2006. "Why did wage inequality increase? Evidence from urban India 1983-99," Journal of Development Economics, Elsevier, vol. 81(1), pages 97-117, October.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    5. Cowell, Frank A & Jenkins, Stephen P, 1995. "How Much Inequality Can We Explain? A Methodology and an Application to the United States," Economic Journal, Royal Economic Society, vol. 105(429), pages 421-430, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    India; Wages; Inequality;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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