Wage Differentials Between Sexes in India - An Explanation

Ravindra H. Dholakia

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Persistent wage differential between male and female workers in any economy is generally sought to be explained by the hypotheses of job-discrimination or sex-discrimination. In the conditions prevalent in the Indian labor market, these two hypotheses do not appear to be convincing. Alternatively, labor market imperfection and segmentation of labor market into male and female labor with distinct supply characteristics are considered to be the main factors behind the wage differential between the sexes. It is the profit maximizing behavior of the wage discriminating monopsonists rather than personal preferences and prejudices of employers against females that gives rise to the persistent wage differential between equally skilled and experienced men and women workers. If such an explanation is accepted, then the policy prescriptions for tackling the male-female wage differentials are totally different from the ones based on the hypotheses of job discrimination and sex-discrimination.

Date: 1987-10-01
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