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The Impact of Chinese Imports on Indian Wage Inequality

Kaveri Deb () and William Hauk ()
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Kaveri Deb: Indian Institute of Information Technology Guwahati

The Indian Journal of Labour Economics, 2020, vol. 63, issue 2, No 4, 267-290

Abstract: Abstract The paper seeks to address the growing inequality in wages between skilled and unskilled workers and between male and female workers in India due to a growing import surge from China. The study on wage movements of skilled versus unskilled workers helps us to understand how imports from India’s largest trade partner have contributed to relative factor returns in the country’s most abundant factor of production. The consideration of wage divergence between male and female workers helps us in determining how significant China’s trade is in addressing gender inequality in India’s labour market. Our analysis reveals that the import surge from China has minor effects on the growing wage difference between skilled and unskilled workers. However, the effect of the Chinese import surge on wage divergence between male and female workers is significant. The existing literature on the effects of international trade on India labour market is largely silent on the considered aspects.

Keywords: Import surge; Skilled and unskilled wages; Gender wage gap (search for similar items in EconPapers)
JEL-codes: C23 C26 F14 F16 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1007/s41027-020-00218-5

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