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

Tandon, Anjali (2021): Inter-industry Wage Differentials in Indian Manufacturing: Convergence or Persistence?

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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.

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