Employment Change in Occupations in Urban India: Implications for Wage Inequality

31 Pages Posted: 16 Oct 2016 Last revised: 17 Feb 2017

Date Written: January 9, 2017

Abstract

This paper analyses employment and wage change patterns in India for a period spanning almost three decades, 1983 to 2011. Using data from the National Sample Survey Organisation, this study finds evidence of job polarization (employment growth in low- and high-skill jobs, and reduction in the middle) in urban India during the 1990s and 2000s. However, the 1980s experienced an employment upgrading. The wage change patterns are almost consistent with the employment change patterns. We find reduction in employment share in routine task intensive occupations which is consistent with the job polarisation literature. We argue that the reduction in employment share in the middle skill routine occupations is a result of mechanisation and technological upgradation within the Indian industry. On the other hand, increase in employment in both low-skill and high-skill occupations is more of a result of growing self-employment in informal sector in urban India.

Keywords: Job polarization, employment change, technological change, wage inequality, India

JEL Classification: E24, J24, J31

Suggested Citation

Sarkar, Sudipa, Employment Change in Occupations in Urban India: Implications for Wage Inequality (January 9, 2017). Available at SSRN: https://ssrn.com/abstract=2850140 or http://dx.doi.org/10.2139/ssrn.2850140

Sudipa Sarkar (Contact Author)

University of Warwick ( email )

University of Warwick, Institute for Employment Re
Coventry, cv47al
United Kingdom

HOME PAGE: http://https://www2.warwick.ac.uk/fac/soc/ier/people/ssarkar

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