Wage determinants of creative industry workers: A quantile regression analysis of traditional Indian embroidery (chikankari) industry workers of Lucknow

Abstract

AbstractThe creative economy has played a significant role in developed nations' economic growth in the past two decades. However, the creative economy is a new phenomenon for the Global South. It could be key for these countries' balanced regional development where typically more focus is given to heavy industries. For a country like India, creating a new policy framework that promotes this sector by modifying existing policies in order to bring flexibility and inclusiveness for future developments is a big challenge. There is a dire need for research into this sector to understand the issues related to labor, entrepreneurs, and the market. Moreover, the existing literature and empirical studies have limitations regarding explaining the factors affecting the wage determinants of workers in India's creative sector. This study highlights the critical component of creative industry workers and their wages based on primary data from the traditional embroidery (chikankari) industry in Lucknow, India. Quantile regression analysis has been used because the workers' wages are highly skewed towards lower and upper quantiles. The results show that the workers' age and education are significant at the lower quantile, while work experience and religion are highly significant at the ninety‐fifth quantile. Additionally, male workers earn significantly more than female workers.