Mapping gender wage gaps in regular employment: a counterfactual decomposition analysis for India

Nikita Soni and Falguni Pattanaik

International Journal of Manpower, 2025, vol. 46, issue 5, 867-898

Abstract: Purpose - In India, women encounter twofold challenges – declining labour force participation and a widening gender wage gap (GWG). The study explores the precarious position of women during the third decade of economic reforms. It examines the influence of demographic and job characteristics on wages, uncovering socioeconomic imbalances and disentangling wage disparities attributable to productive and non-productive factors. Design/methodology/approach - Using unit-level data from the NSS EUS (2011–12) and PLFS (2018–19), the study employs OLS and quantile regression methods to estimate the contribution of socioeconomic factors in wage determination. It applied Oaxaca–Blinder decomposition alongside other mean-based decomposition approaches. Furthermore, the counterfactual decomposition proposed by Machado–Mata and Melly is also applied. Findings - Structural and socio-cultural barriers continue to depress women’s LFPR and wages. Women remain concentrated at the lower end of the wage spectrum, earning less than men. However, GWG has slightly narrowed, but discrimination remains substantial, which is primarily driven by employers’ undervaluation of women’s work, rooted in prejudice. Additionally, the sticky-floor phenomenon worsened in 2018–19, further hindering upward mobility. Originality/value - Leveraging recent survey data helps inform policy discourse to promote gender equality and address workplace disparities. It urges policymakers to re-evaluate anti-discrimination measures to combat socioeconomic challenges.

Keywords: Gender wage gap; Discrimination; Oaxaca–Blinder decomposition; Counterfactual decomposition; Sticky floor; J71; J31; J82 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:ijm-05-2024-0299

DOI: 10.1108/IJM-05-2024-0299

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