Open AccessDiscrimination and Determinants of Wage in India: An Analysis from NSSO 66 Round Data
Author(s) -
Amit Soni,
Deepti Goel
Publication year - 2014
Publication title -
focus : journal of international business
Language(s) - English
Resource type - Journals
eISSN - 2395-258X
pISSN - 2347-4459
DOI - 10.17492/focus.v1i2.2487
Subject(s) - wage , economics , demographic economics , regression analysis , econometrics , socioeconomics , labour economics , statistics , mathematics
This paper analyses determinants of wage in India using NSSO socio-economic survey 66th round (July 2009-June 2010) data and Heckman two step regression procedure. On the basis of results, it attempts to find out the extent of gender discrimination and discrimination due to urban-rural divide applying Oaxaca-Blinder decomposition technique. Results show that socio-economic, demographic, location, and job attributes are significant determinants of wage in India. However, when cost of living index was added as a control along with others, urban-rural divide in wage became marginal (8%) and in decomposition most of the differentials in wage is due to the explained component. However, this study found that wage of an average male is 33.43% higher than wage of an average female, almost all due to unexplained factors indicating substantially high degree of wage discrimination in India even after discounting the role of omitted variables.