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Evolution of wage inequality in India (1983-2017): The role of occupational task content

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  • Saloni Khurana
  • Kanika Mahajan

Abstract

We examine data for urban workers in the non-agricultural sector across three decades, 1983-2017, and find that earnings inequality increased during 1983-2004, was largely stable during 2004-11, and decreased during 2011-17. We explore whether decline in routine jobs and change in demand for skills has shaped evolution of earnings inequality in India.

Suggested Citation

  • Saloni Khurana & Kanika Mahajan, 2020. "Evolution of wage inequality in India (1983-2017): The role of occupational task content," WIDER Working Paper Series wp-2020-167, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-167
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-167.pdf
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    References listed on IDEAS

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    1. Lewandowski, Piotr & Park, Albert & Schotte, Simone, 2020. "The Global Distribution of Routine and Non-Routine Work," IZA Discussion Papers 13384, Institute of Labor Economics (IZA).
    2. Carlos Medina & Christian Manuel Posso Suárez, 2010. "Technical Change and Polarization of the Labor Market: Evidence for Brazil, Colombia and Mexico," Borradores de Economia 7269, Banco de la Republica.
    3. Sudipa Sarkar, 2019. "Employment Change in Occupations in Urban India: Implications for Wage Inequality," Development and Change, International Institute of Social Studies, vol. 50(5), pages 1398-1429, September.
    4. 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.
    5. Acemoglu, Daron & Autor, David, 2011. "Skills, Tasks and Technologies: Implications for Employment and Earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 12, pages 1043-1171, Elsevier.
    6. Kupets, Olga, 2016. "Education-job mismatch in Ukraine: Too many people with tertiary education or too many jobs for low-skilled?," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 125-147.
    7. Firpo, Sergio & Fortin, Nicole M. & Lemieux, Thomas, 2011. "Occupational Tasks and Changes in the Wage Structure," IZA Discussion Papers 5542, Institute of Labor Economics (IZA).
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    Cited by:

    1. Khurana, Saloni & Mahajan, Kanika & Sen, Kunal, 2023. "Minimum Wages and Changing Wage Inequality in India," IZA Discussion Papers 16600, Institute of Labor Economics (IZA).
    2. Sonu Madan & Manisha Yadav, 2022. "Decomposing Skill Based Wage Inequality in India: An Application of Theil Index," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 967-979, December.

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