What Explains Wage in India?

Abstract

This paper explores the major determinants of wages in India, drawing cues from National Sample Survey 66th round unit level data. To assess the major factors that impact wages, the authors take into account, in addition to the conventional independent variables that cover household, personal, and labour market characteristics, the general well-being of population, which, in practice, is encapsulated by a composite measure called Human Development Index (HDI). The analysis is limited to those who receive wages on a regular basis and who fall in the age group of 15-59. The empirical results show that wages in India are bound up with not only economic factors, but also identities such as sex and caste.