The Indian Journal of Labour Economics

, Volume 61, Issue 4, pp 623–638 | Cite as

Changes in Wage Trends and Earnings Differences in Kerala

  • M. R. AneeshEmail author


In this article, the weekly earnings gap between men and women in Kerala is examined by a number of inequality indices such as the percentile ratio and the Gini coefficient. The entropy measures of inequality are used to decompose wage inequality into within-group and between-group inequalities. The earnings inequality between men and women has been increasing, even though their wage grows faster than men’s wage. The indices of inequality suggest the growing wage disparity in the regular and casual labour market. The result reveals that the levels of education and earnings are positively correlated, but women with the same level of education earn much less than men in regular salaried work. The rising wage inequality of men and women during 2004–2009 were associated with the growth rate of wages in the same period. That is, the wage rates of both regular and casual workers have increased more than four per cent during the period that experienced the highest inequality.


Employment Wage differences Earnings Inequality Labour 


  1. Abraham, Vinoj. 2010. The Effect of Information Technology on Wage Inequality: Evidence from Indian Manufacturing Sector. CDS Working Paper No. 437, Centre for Development Studies, Thiruvananthapuram.Google Scholar
  2. Becker, Garry S. 1962. Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy 70 (supplement): 9–49.CrossRefGoogle Scholar
  3. Berman, Eli, Rohini Somanathan, and Hong W. Tan. 2005. Is Skill-Based Technological Change Here Yet? Evidence from Indian Manufacturing in the 1990s. Annales d’Économie et de Statistique 79 (80): 299–321.CrossRefGoogle Scholar
  4. Chamarbagwala, R. 2006. Economic Liberalisation and Wage Inequality in India. World Development 34 (12): 1997–2015.CrossRefGoogle Scholar
  5. Cowell, Frank, and Jenkins, Stephen. 1995. How Much Inequality Can We Explain? A Methodology and an Application to the United States. The Economic Journal 105(429): 421–430CrossRefGoogle Scholar
  6. Das, Panchanan. 2012. Wage Inequality in India: Decomposition by Sector, Gender and Activity Status. Economic and Political Weekly 47(50): 58–64Google Scholar
  7. Douglas, Paul H. 1934. Theory of Wages. New York: McMillanGoogle Scholar
  8. Duraisamy, P. 2002. Changes in Returns to Education in India, 1983-94: by Gender, Age-cohort and and Location. Economics of Education Review 21(6): 609–622CrossRefGoogle Scholar
  9. Dutta, P.V. 2004. The Structure of Wages in India. PRUS Working Paper No. 25, Poverty Research Unit at Sussex, University of Sussex.Google Scholar
  10. Dutta, P.V. 2005. Accounting for Wage Inequality in India. PRUS Working Paper No. 29, Poverty Research Unit at Sussex, University of Sussex.Google Scholar
  11. Johnson, George E. 1997. Changes in Earnings Inequality: The Role of Demand Shifts. The Journal of Economic Perspectives 11 (2): 41–54.CrossRefGoogle Scholar
  12. Johri, C.K., and N.C. Agarwal. 1966. Inter-Industry Wage Structure in India, 1950–1961: An Analysis. Indian Journal of Industrial Relations 1 (4): 377–414.Google Scholar
  13. Kijima, Yoko. 2006. Why did Wage Inequality Increase? Evidence from Urban India 1983–99. Journal of Development Economics 81: 97–117.CrossRefGoogle Scholar
  14. Kingdon, Geeta Gandhi and Jeemol Unni. 2001. Education and Women’s Labour Market Outcomes in India. Education Economics 9(2): 173–195CrossRefGoogle Scholar
  15. Madheswaran S, and Paul Attewell. 2007. Caste Discrimination in the Indian Urban Labour Market: Evidence from the National Sample Survey. Economic and Political Weekly 42(41): 4146–4153Google Scholar
  16. Mahapatro, S.B. 1980. Inter-Industry Wage Differentials in Orissa: An Empirical Analysis. Journal of Industrial Relations 15 (4): 525–536.Google Scholar
  17. Mincer, Jacob. 1974. Schooling, Experience and Earning. New York: NBER.Google Scholar
  18. Ornati, Oscar. 1955. Wages in India. Economic Development and Cultural Change 3 (3): 241–259.CrossRefGoogle Scholar
  19. Ramaswamy, K.V. 2008. Wage Inequality in Indian Manufacturing: Is it Trade, Technology or Labour Regulations? IGIDR Working Paper No. 2008-021. Mumbai: Indira Gandhi Institute of Development Research.Google Scholar
  20. Rustagi, Preet. 2005. Understanding Gender Inequalities in Wages and Incomes in India. Indian Journal of Labour Economics 48 (2): 319–334.Google Scholar
  21. Sengupta, Anindita, and Panchanan Das. 2014. Gender Wage Discrimination across Social and Religious Groups in India: Estimates with Unit Level Data. Economic and Political Weekly XLIX 21: 71–76.Google Scholar
  22. Singh, Lakhwinder. 1991. Changes in the Inter-Industry Structure of Wages: The Case of Punjab. Indian Journal of Industrial Relations 27 (2): 26–42.Google Scholar
  23. Slichter, Summer. 1950. Notes on the Structure of Wages. Review of Economics and Statistics 32: 80–91.CrossRefGoogle Scholar
  24. Verma, Pramod C. 1970. Inter-Industry Wage Structure in India: Further Evidence. Indian Journal of Industrial Relations 6 (3): 289–295.Google Scholar

Copyright information

© Indian Society of Labour Economics 2019

Authors and Affiliations

  1. 1.Christ (Deemed University)BengaluruIndia

Personalised recommendations