Changing Wage Structure in India in the Post-Reform Era
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World Bank, Washington, DC
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This paper documents the changing
structure of wages in India over the post-reform era, the
roughly two-decade period since 1993. To investigate the
factors underlying these changes, a supply-demand framework
is applied at the level of the Indian state. While real
wages have risen across India over the past two decades, the
increase has been greater in rural areas and, especially,
for unskilled workers. The analysis finds that, in rural
areas, the changing wage structure has been driven largely
by relative supply factors, such as increased overall
education levels and falling female labor force
participation. Relative wage changes between rural and urban
areas have been driven largely by shifts in employment,
notably into unskilled-intensive sectors like construction.
Palabras clave
JOBS, SKILL‐UPGRADING, EMPLOYMENT, RURAL DIVIDE, PRODUCTION, LAGS, EMPLOYMENT SHARE, PREVIOUS SECTION, INCOME, SERVICE SECTOR, AGRICULTURAL PRODUCTION, EMPLOYMENT OPPORTUNITIES, WAGE‐EARNER, BASE‐YEAR, RURAL LABOR MARKETS, GROUP WORKERS, LABOR FORCE, INFORMATION, ELASTICITY, POST-REFORM, WELFARE, JOB, EFFECTS, WAGE INCREASES, LABOR ECONOMICS, VARIABLES, PAYING JOBS, RURAL LABOR, INPUTS, RETAIL TRADE, LABOR FORCE PARTICIPATION, REAL WAGES, SOCIAL PROGRAMS, ASSOCIATIONS, MEASURES, WAGE GROWTH, ECONOMIC ANALYSIS, TRENDS, DRIVERS, POVERTY REDUCTION, AGRICULTURAL WAGE, PUBLIC‐WORKS, LABOR MARKET, EARNINGS INEQUALITY, URBAN EMPLOYMENT, WAGE‐GROWTH, INDUSTRY WAGE, WORKER, SELF‐EMPLOYED, MARKETS, ORGANIZATIONS, AGRICULTURAL PRICES, COMPETITIVE MARKET, LABOR, PRODUCT, ELASTICITY OF SUBSTITUTION, TOTAL EMPLOYMENT, RURAL SERVICES, RURAL WAGES, PUBLIC WORKS PROGRAM, FINANCE, REAL‐ WAGE, FEMALE LABOR, WAGE GAINS, UNEMPLOYMENT, SKILL PREMIUM, PUBLIC‐ WORKS PROGRAM, GENERAL EQUILIBRIUM, RURAL COUNTERPARTS, WORKERS, WAGES, DEFLATORS, ECONOMETRIC ANALYSIS, LABOR MARKET INTERVENTION, RURAL SECTOR, LABOR DEMAND, REAL WAGE, HOUSEHOLD ENTERPRISE, WAGE INEQUALITY, VALUE, RURAL FEMALE, CASUAL WORKERS, RURAL GROWTH, DEMAND, WAGE PREMIUM, AGRICULTURAL SECTOR, AGRICULTURE, LABOR MARKET INSTITUTIONS, LABOR MARKET OUTCOMES, EMPLOYMENT GROWTH, RURAL, MEASUREMENT, RURAL WORKERS, MARKET, PUBLIC WORKS, TRADE LIBERALIZATION, RURAL EMPLOYMENT, PUBLIC‐WORKS PROGRAM, ECONOMICS, PRODUCTION FUNCTION, PUBLIC‐ WORKS, EMPLOYMENT IN AGRICULTURE, REGRESSION ANALYSIS, EMPLOYMENT GUARANTEE, INSURANCE, WAGE STRUCTURE, TRADE, SAFETY‐NET, GROWTH RATE, POVERTY, RURAL AREAS, FEMALE LABOR FORCE, SUPPLY, LABOR SUPPLY, CONSUMER PRICE INDEX, UNSKILLED WORKERS, POOR, FOOD PRICES, LABOR MARKETS, OUTCOMES, SAFETY, UNSKILLED LABOR, SELF‐EMPLOYMENT, WAGE EMPLOYMENT, LABOR SHARE, PRICES, MARKET WAGE, WAGE‐PREMIUM, INEQUALITY, DEVELOPMENT POLICY