Indian Journal of Industrial Relations: Economics & Social Dev.

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Productivity Led Wage Disparity in the Indian Industry


Affiliations
1 Dept. of Economics, School of Social Sciences, Gujarat University, Ahmedabad 380 009, India
     

   Subscribe/Renew Journal


Labour productivity and wage rates have recorded varying rates of growth in different sub-sectors of the Indian industry during different phases of time. Over a period of time the share of wages in labour productivity has declined due to relatively higher growth in labour productivity. The rise in labour productivity coupled with the competitive product and labour markets has led to the rise in wage disparities among the workers within and across the sub-sectors. The study revealed that the wages are closely linked to the labour productivity in the industrial sector in India.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Bhandari, A.K. & A. Heshmati (2006), “Wage Inequality and Job Insecurity among Permanent and Contract Workers in India: Evidence from Organized Manufacturing Industries”, Discussion Paper No. 2097, Institute for the Study of Labour (IZA), Bonn, Germany.

  • Bhatnagar, Veena (1988), “Wage Productivity Relationships in Indian Industries”, Productivity, XXVIII ( 4).

  • Carruth, A., B. Collier & A. Dickerson (1999), “Inter-Industry Wage Differences and Individual Heterogeneity : How Competitive is Wage Setting in the UK?”, ESRC Research Centre on Micro-Social Change at the University of Essex.

  • Dholakia, B.H. (1976), “Determinants of Interindustry Wage Structure in India”, The Indian Journal of Industrial Relations, 11(4).

  • Dickens, W.T. & L.F. Katz (1986), “Inter-industry Wage Differences and Industry Characteristics”, National Bureau of Economic Research, Working Paper No. 2014, Cambridge.

  • Felipe, J. (2005), “A Note on Competitiveness, Unit Labour Costs and Growth: Is ‘Kaldor’s Paradox’ a Figment of Interpretation”? CAMA Working Paper 6/2005, Centre for Applied Macroeconomic Analysis, The Australian National University.

  • Holzer, H.J., L.F. Katz, & A.B. Krueger (1988), “Job Queues and Wages: New Evidence on the Minimum Wage and Inter-Industry Wage Structure”, Working Paper No. 230, Industrial Relations Section, Princeton University.

  • Jean, S. & G. Nicoletti (2002), “Product Market Regulation and Wage Premia in Europe and North America: An Empirical Investigation”, Economics Department, Working Paper No. 318, Organisation for Economic Co-operation and Development.

  • Katz, L.F. & K.H. Murphy (1991), “Changes in Relative Wages, 1963-1987: Supply and Demand Factors”, Working Paper No. 3927, National Bureau of Economic Research, Cambridge.

  • Katz, L.F.& L.H. Summers (1988), “Can Inter- Industry Wage Differentials Justify Strategic Trade Policy”, Working Paper No. 2739, National Bureau of Economic Research, Cambridge.

  • Krueger, A.B. (1991), “How Computers Have Changed The Wage Structure: Evidence From Micro Data – 1984-89”, Working Paper No. 3858, National Bureau of Economic Research, Cambridge.

  • Krueger, A.B. (1999), “Measuring Labour’s Share”, Working Paper No.413, Princeton University.

  • Krueger, A.B. & L.H. Summers (1986), “Reflections on the Inter-Industry Wage Structure”, Working Paper No. 1968, National Bureau of Economic Research, Cambridge.

  • Krugman, P. (1994), “Past and Prospective Causes of High Unemployment”, Federal Reserve Bank of Kansas City, Economic Review, Fourth Quarter.

  • Lowe, P. (1995), “Labour-Productivity Growth and Relative Wages: 1978-1994”, Reserve Bank of Australia Conference, Productivity and Growth.

  • Murphy, K.M., W.C. Riddell & P.M. Romer (1998), “Wages, Skills and Technology in the United states and Canada”, Working Paper No. 6638, National Bureau of Economic Research, Cambridge.

  • Papola, T.S. (1972), “Inter-industry Wage Structure - Technology Hypothesis”, Anvesak, 2(1).

  • Sidhu, Hina (1997), “Wage Differentials in SSI Sector in Gujarat”, Indian Journal of Industrial Relations, 33 (2).

  • Silva, S.de, (1998) “An Introduction to Performance and Skill-Based Pay Systems” International Labour Organization (ILO), Geneva.

  • Singh, L. (1991), “Changes in the Inter Industry Structure of Wages: The Case of Punjab”, Indian Journal of Industrial Relations, 27 (2).

  • Verlinden, J. (1997), “Concept, Measurement and Policy Implications of the Nairu-Perspective from Belgium”, Working Paper No.184, Organisation for Economic Co-Operation and Development, Paris.

  • Verma, P. & Subbayamma G. (1985), “The Interindustry Wage Structure in India: Recent Experience “, The Indian Journal of labour Economics, XXVIII (3).

  • Virén, M. (2005), “Why Do Capital Intensive Companies Pay Higher Wages?”, Bank of Finland Research, Discussion Papers 5/ 2005.


Abstract Views: 399

PDF Views: 0




  • Productivity Led Wage Disparity in the Indian Industry

Abstract Views: 399  |  PDF Views: 0

Authors

Hina Sidhu
Dept. of Economics, School of Social Sciences, Gujarat University, Ahmedabad 380 009, India

Abstract


Labour productivity and wage rates have recorded varying rates of growth in different sub-sectors of the Indian industry during different phases of time. Over a period of time the share of wages in labour productivity has declined due to relatively higher growth in labour productivity. The rise in labour productivity coupled with the competitive product and labour markets has led to the rise in wage disparities among the workers within and across the sub-sectors. The study revealed that the wages are closely linked to the labour productivity in the industrial sector in India.

References