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Decomposing Skill Based Wage Inequality in India: An Application of Theil Index.
- Source :
- Indian Journal of Labour Economics; Dec2022, Vol. 65 Issue 4, p967-979, 13p
- Publication Year :
- 2022
-
Abstract
- Wage inequality is one of the most prominent topics of discussion across the world. The study is an attempt to estimate wage inequality in-between and within various skill-based occupational groups in India. For the purpose, Theil index, one of the most important measures in generalised entropy family, has been utilised on the unit-level data of Periodic Labour Force Survey, 2017–18 (PLFS) pertaining to 94,460 workers employed across skill-categorised broad occupational groups. Wage inequality has observed to be highest in occupational groups requiring highly skilled workers (skill level 4), and the same is witnessed lowest among workers in occupations requiring low level of skill (skill level 1). The study found occupational diversity, diverse nature of work assignment in accordance with cognitive ability of workers the main reasons behind increasing wage inequalities. [ABSTRACT FROM AUTHOR]
- Subjects :
- INCOME inequality
LABOR supply
SKILLED labor
COGNITIVE ability
Subjects
Details
- Language :
- English
- ISSN :
- 09717927
- Volume :
- 65
- Issue :
- 4
- Database :
- Supplemental Index
- Journal :
- Indian Journal of Labour Economics
- Publication Type :
- Academic Journal
- Accession number :
- 160778310
- Full Text :
- https://doi.org/10.1007/s41027-022-00405-6