Inter-industry Wage Differentials in Indian Manufacturing: Convergence or Persistence?

Anjali Tandon

MPRA Paper from University Library of Munich, Germany

Abstract: From a labour perspective, wage rates are reflective of the market demand for different skills and the institutional structures. Also, wage rate is a better measure of the well-being of workers solely dependent on wage income. This paper notes persistent regularity in industry-level wage rates confirming the absence of a convergence behaviour. The stability of industry-level wage rates brings industrial reforms under scanner for their implications on worker welfare. Wage convergence could be inhibited by the inter-industry movement of workers. One way to counter the proliferation of low-wage employment can be improved inter-industry worker movement through better adaptability of workers.

Keywords: Convergence; wage rates; factory sector; non-factory sector; work-based credits; worker welfare (search for similar items in EconPapers)
JEL-codes: J0 J08 J31 L60 (search for similar items in EconPapers)
Date: 2021, Revised 2022
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