Economic Liberalization and Wage Inequality in India

Chamarbagwala, Rubiana

doi:10.1016/j.worlddev.2006.02.010

Cited by 110 publications

(55 citation statements)

References 11 publications

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“…Although very little research has so far focused on employment change and job polarization, there is a vast literature on economic liberalization and wage inequality in developing countries including urban India (for example, Azam, ; Banerjee and Piketty, ; Basu, ; Bhalotra, ; Chamarbagwala, ; Kijima, ). All of these studies have analysed data from the 1980s or 1990s when India experienced trade liberalization.…”

Section: A Review Of Earlier Research In Indiamentioning

confidence: 99%

“…Two relevant areas of research in India have investigated the presence of technology (Berman et al., ; Unni and Rani, ), and have extensively analysed the country's earnings inequality (Azam, ; Banerjee and Piketty, ; Basu, ; Bhalotra, ; Chamarbagwala, ; Kijima, ). Reflecting on the former literature, which provides evidence of technological progress in India, this article explores whether technological change has caused employment polarization and subsequent wage polarization in urban India.…”

Section: Introductionmentioning

confidence: 99%

“…The case of India is of particular interest as earnings inequality is high and has been increasing for the last few decades (Azam, ; Chamarbagwala, ; Kijima, ; Topalova, ). This is made all the more significant by the fact that India is one of the largest emerging economies in the world, with almost one‐fifth of the total global population.…”

Section: Introductionmentioning

confidence: 99%

“…However, several studies have provided evidence of increasing wage inequality in LDCs after trade liberalization (Chamarbagwala, ; Meschi and Vivarelli, ). These studies argue that if assumptions of homogeneous production functions among countries are relaxed, international openness facilitates technology transfer and capital flows from developed countries to LDCs.…”

Section: Introductionmentioning

confidence: 99%

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Employment Change in Occupations in Urban India: Implications for Wage Inequality

Sarkar¹

2018

Development and Change

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This article analyses employment and wage change patterns in India for a period spanning almost three decades, from 1983–84 to 2011–12. Using data from the National Sample Survey Organization, the study finds evidence of job polarization (employment growth in low‐ and high‐skill jobs and decline in middle‐skill jobs) in urban India during the 1990s and 2000s, and employment upgrading in the 1980s. Consistent with the literature on job polarization, the article finds a reduction in employment share in routine task intensive occupations. The author argues that this reduction is a result of both mechanization and technological upgrading within Indian industry. On the other hand, an increase in employment share in both low‐skill and high‐skill occupations is argued to be a result of growing self‐employment and informal sector employment in urban India. The wage change patterns are largely consistent with the employment change patterns. The analysis suggests that structural change in occupation is an important factor for understanding earnings inequality in India.

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Section: A Review Of Earlier Research In Indiamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Employment Change in Occupations in Urban India: Implications for Wage Inequality

Sarkar¹

2018

Development and Change

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“…Hence analysis of inter-industry wage growth is of importance in understanding how the labor market has responded to reforms. In spite of a modest literature investigating wage inequality between skilled and unskilled workers (Banga, 2005;Chamarbagwala, 2006;Sen, 2009, among others) there has not been any explicit attempt to explore the inter-industry wage structure for similar workers in India. The present study examines whether there is any evidence that in the organized manufacturing sector in India, similar production (blue collar) workers in some industries fared better than those in others.…”

Section: Introductionmentioning

confidence: 99%

Liberalization and the Changing Inter‐industry Wage Structure of the Organized Manufacturing Sector in India, 1973/74–2003/04

Chatterji

Choudhury

2013

Review Development Economics

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This paper examines the inter‐industry wage structure of the organized manufacturing sector in India for the period 1973/74–2003/04 by estimating the growth of average real wages for production workers by industry. Using wage data on 51 three‐digit industries, our estimation procedure obtains estimates of growth of real wages per worker that are wholly deterministic in nature by accounting for any potential structural break(s) associated with the reforms. Our paper identifies three distinct regimes—pre‐reform, first phase reforms and second phase reforms, over which real wages have grown at varying rates for each industry. Our findings suggest that the inter‐industry wage differences have become more pronounced in the post‐reform periods. The paper provides new evidence from India on the need to consider seriously the hypothesis that industry affiliation is potentially an important determinant of wages when studying any relationship between reforms and wages.

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Wage inequality across regions in India: Exploring the role of education and skills

Azad,

Hari

2024

Journal of Public Affairs

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This study explores regional differences in wage inequality in India and examine various contributory factors for increasing disparities in wages across different regions in India. Using data from the India Human Development Survey (IHDS) 2011–12 and employing RIF regression methodology, the study investigates the influence of the level of education, experience, English and computer skills, gender, age, religion, and other background characteristics on wage inequality. The findings reveal that higher education levels, experience, English, and computer skills significantly contribute to wage disparities across regions. The study highlights the importance of addressing these factors to promote greater equity and inclusivity in the labor market.

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Economic Liberalization and Wage Inequality in India

Cited by 110 publications

References 11 publications

Employment Change in Occupations in Urban India: Implications for Wage Inequality

Employment Change in Occupations in Urban India: Implications for Wage Inequality

Liberalization and the Changing Inter‐industry Wage Structure of the Organized Manufacturing Sector in India, 1973/74–2003/04

Wage inequality across regions in India: Exploring the role of education and skills

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