Wage structure and wage differentials in formal and informal sectors in India

Singhari, Smrutirekha; Madheswaran, S.

doi:10.1007/s41027-018-0110-y

Cited by 10 publications

(9 citation statements)

References 6 publications

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“…These results are again consistent with the findings of earlier studies like Madheswaran and Attewell (2007), Deshpande et al (2015), Duraisamy and Duraisamy (2016), Madheswaran and Singhari (2016), Singhari and Madheswaran (2017), and Padhi et al (2019), who have found that earning discrimination against workers belonging to the SC category is high in India.…”

Section: Results Based On Descriptive Statisticssupporting

confidence: 92%

“…This result suggests that like females, SC vocationally trained workers also earn less because of the existing wage discrimination against them in the vocational labour market. These results are again consistent with the findings of earlier studies like Madheswaran and Attewell (2007), Deshpande et al (2015), Duraisamy and Duraisamy (2016), Madheswaran and Singhari (2016), Madheswaran (2017), andPadhi et al (2019), who have found that earning discrimination against workers belonging to the SC category is high in India.…”

Section: Earning Differentials and Its Decompositionsupporting

confidence: 92%

“…On the other hand, existing earning-wage inequality studies in India, by and large, have focused on entire labour force and the issues such as labour market segmentation based on informality, government versus private jobs, occupations, etc. Existing studies on earning differentials by gender (Kingdon, 1998;Kingdon & Unni, 2001;Duraisamy & Duraisamy, 2005;Agrawal, 2014;Deshpande et al, 2015) and social group (Agrawal, 2014;Madheswaran & Attewell, 2007;Madheswaran & Singhari, 2016;Singhari & Madheswaran, 2017;Thorat et al, 2009) have not examined the case of vocationally trained youth categorically. Except Singh et al (2020b), there is a dearth of studies that examine wage inequality among vocationally trained youth in India, including the states of Punjab and Haryana.…”

Section: A Brief Review Of Literaturementioning

confidence: 99%

“…3. See Madheswaran and Attewell (2007), Madheswaran and Singhari (2017) and Padhi et al (2019) for more details. 4.…”

Section: Declaration Of Conflicting Interestsmentioning

confidence: 99%

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Employment and Earning Differentials Among Vocationally Trained Youth: Evidence from field studies in Punjab and Haryana in India

Singh

Parida

2020

Millennial Asia

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This article examines the employability of vocationally trained youth and estimates their earning functions and existing wage differentials by gender and social groups in both Punjab and Haryana. Using primary data from two selected districts (one from each state) with a sample size of 914 pass-outs from 19 training institutes, we find that lack of demand and skill issues restrict vocationally trained youth to obtain quality jobs in these districts. Hence, most of them are either found in contractual jobs with a lower level of earning or remain unemployed from the time of completion of their training. Moreover, significant earning/wage differences are noted across gender and social groups. Female and Scheduled Caste (SC) workers are discriminated by getting paid lesser than their male and upper caste counterparts, despite their similar training and skill endowments. Hence, it is suggested that government intervention is necessary to lower the existing skill gap and to improve the quality of jobs for vocationally trained youth to reduce the rising unemployment problem.

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Section: Results Based On Descriptive Statisticssupporting

confidence: 92%

Section: Earning Differentials and Its Decompositionsupporting

confidence: 92%

Section: A Brief Review Of Literaturementioning

confidence: 99%

“…3. See Madheswaran and Attewell (2007), Madheswaran and Singhari (2017) and Padhi et al (2019) for more details. 4.…”

Section: Declaration Of Conflicting Interestsmentioning

confidence: 99%

See 2 more Smart Citations

Employment and Earning Differentials Among Vocationally Trained Youth: Evidence from field studies in Punjab and Haryana in India

Singh

Parida

2020

Millennial Asia

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“…In addition, the human capital theory proclaims that the wage gap persists because of dissimilarities in the level of education, technical skills, and work experience between the two groups of formal and informal workers. Singhari and Madheswaran (2017) analyzed wage differentials in the informal and formal sectors in India, but they have also not incorporated the wage differential for informal and formal workers.…”

Section: Introductionmentioning

confidence: 99%

Wage Gap Between Formal and Informal Regular Workers in India: Evidence from the National Sample Survey

Kumar

Pandey

2021

Global Journal of Emerging Market Economies

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This article elucidates the wage differential between formal and informal workers across different sectors, gender, occupation, and industry by using the 61st (2004–2005) and 68th (2011–2012) Rounds of National Sample Survey Office (NSSO) unit-level data. The study emphasizes two things: first, identifying the existence of the absolute wage gap between formal and informal workers and, second, finding the intensity of discrimination in wage between formal and informal workers. The vast body of literature available on this issue identifies gender, caste, religion, and region as the factors causing wage discrimination. This literature makes a shift from these traditional concepts by explaining the importance of job contract as a basis of wage discrimination. This study utilizes the percentage relative gap (PGR) to work out the absolute wage gap between the two types of workers (formal and informal) and thereafter decomposes it to arrive at the source of the wage gap. The study applies the threefold Blinder–Oaxaca (B–O) decomposition method, which categorizes the total wage gap into three parts. The dependent variable chosen for the equation is the natural logarithm of daily wage. While the wage gap between formal and informal workers did not significantly fall during the study period, the results, on the other hand, indicate that the component of discrimination is larger than the component of endowment. This explains the discrimination perpetrated against informal workers in the Indian labor market. Tackling such discrimination necessitates implementation of more proactive policies for achieving wage equality in India.

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