Wage Differentials and Inequality in Managerial and Professional Jobs: Quantile Regression Analysis

Abstract

In the economics literature, it is vividly portrayed that there is a great deal of disparity in wages received by workers across economic activities and occupations in India. The primary purpose of this article is to identify factors determining wage differentials and to measure wage inequality in managerial and professional occupations. Using unit-level records of periodic labour force survey (PLFS) published by the National Sample Survey Office (NSSO), we apply quantile regression model to examine how wage distribution is determined by personal, household and labour market characteristics. Our analysis is limited to persons aged between 15 and 65 and employed in managerial and professional occupations. The findings suggest that rural–urban dichotomy, gender, technical education, social group, job contract, type of enterprise and enterprise workforce size are statistically significant across quantiles and are important in explaining the wage distribution of managerial and professional workers in India. From a policy perspective, the invigoration of gender-based measures coupled with the expansion of technical education and labour market institutions are essential for bridging the wage disparity in India. JEL Classifications: J16, J24, J31