Gender-Based Wage Discrimination in Indian Urban Labour Market: An Assessment

Abstract

This study attempts at verifying the pattern of the wage gap between gender in India’s urban labour market using NSS 50th (1993–1994), 61st (2004–2005), and 68th (2011–2012) Employment and Unemployment Surveys. The wage gap between sexes in the urban labour market is verified among the regular and casual workers over a period of two decades (1993–1994 to 2011–2012). Using Blinder–Oaxaca decomposition as well as Recentered Influence Function (RIF) quintile decomposition analysis, it is observed that there is a male bias in wages in both the categories, namely, regular and casual workers. Female workers are also at a disadvantaged position via-a-vis male counterparts, and there is considerable disparity exists with regards to employment and earning standard between sexes. The decomposition exercise shows that the role of the discrimination component effect is larger than that of the endowment component across the regular and casual workers. Controlling for characteristic homogeneity, it is observed that female workers have a systematic wage disadvantage against their male counterparts in the urban labour market of India.