Minimum wages and changing wage inequality in India

Saloni Khurana, Kanika Mahajan and Kunal Sen

No wp-2023-67, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Using nationally representative data on employment and earnings, this paper documents a fall in wage inequality in India over the last two decades. It then examines the role played by increasing minimum wages for the lowest skilled workers in India in contributing to the observed decline. Exploiting regional variation in changes in minimum wages over time in the country, we find that an increase in minimum wages by one per cent led to an increase in wages for workers in the lowest quintile by 0.17 per cent.

Keywords: Minimum wage; Wage inequality; India; Employment (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-lma and nep-ure
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Citations: View citations in EconPapers (1)

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Working Paper: Minimum Wages and Changing Wage Inequality in India (2023)
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