Wage Gap Between Formal and Informal Regular Workers in India: Evidence from the National Sample Survey

Q2 Economics, Econometrics and Finance
Manik Kumar, Sweety Pandey
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引用次数: 4

Abstract

This article elucidates the wage differential between formal and informal workers across different sectors, gender, occupation, and industry by using the 61st (2004–2005) and 68th (2011–2012) Rounds of National Sample Survey Office (NSSO) unit-level data. The study emphasizes two things: first, identifying the existence of the absolute wage gap between formal and informal workers and, second, finding the intensity of discrimination in wage between formal and informal workers. The vast body of literature available on this issue identifies gender, caste, religion, and region as the factors causing wage discrimination. This literature makes a shift from these traditional concepts by explaining the importance of job contract as a basis of wage discrimination. This study utilizes the percentage relative gap (PGR) to work out the absolute wage gap between the two types of workers (formal and informal) and thereafter decomposes it to arrive at the source of the wage gap. The study applies the threefold Blinder–Oaxaca (B–O) decomposition method, which categorizes the total wage gap into three parts. The dependent variable chosen for the equation is the natural logarithm of daily wage. While the wage gap between formal and informal workers did not significantly fall during the study period, the results, on the other hand, indicate that the component of discrimination is larger than the component of endowment. This explains the discrimination perpetrated against informal workers in the Indian labor market. Tackling such discrimination necessitates implementation of more proactive policies for achieving wage equality in India.
印度正规工人与非正规工人的工资差距:来自全国抽样调查的证据
本文利用全国抽样调查办公室(NSSO)第61轮(2004-2005年)和第68轮(2011-2012年)单位数据,阐述了不同部门、性别、职业和行业的正式工人和非正式工人的工资差异。该研究强调了两件事:第一,确定正式工人和非正式工人之间绝对工资差距的存在;第二,发现正式工人和非正式工人之间工资歧视的程度。关于这个问题的大量文献表明,性别、种姓、宗教和地区是造成工资歧视的因素。这篇文献通过解释工作合同作为工资歧视基础的重要性,从这些传统概念转变。本研究利用百分比相对差距(PGR)计算出两类工人(正式工人和非正式工人)之间的绝对工资差距,并对其进行分解,得出工资差距的根源。本研究采用Blinder-Oaxaca (B-O)三重分解方法,将总工资差距分为三部分。方程的因变量为日工资的自然对数。虽然在研究期间,正式和非正式工人之间的工资差距没有显著下降,但另一方面,结果表明,歧视的成分大于禀赋的成分。这解释了印度劳动力市场上对非正式工人的歧视。解决这种歧视问题需要实施更积极的政策,以实现印度的工资平等。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Global Journal of Emerging Market Economies
Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)
CiteScore
2.70
自引率
0.00%
发文量
27
期刊介绍: Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.
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