The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04

Monojit Chatterji, Homagni Choudhury

    Research output: Working paperDiscussion paper

    160 Downloads (Pure)

    Abstract

    This study examines the inter-industry wage structure of the organised manufacturing sector in India for the period 1973-74 to 2003-04 by estimating the growth of average real wages for production workers by industry. In order to estimate the growth rates, the study adopts a methodological framework that differs from other studies in that the time series properties of the concerned variables are closely considered in order to obtain meaningful estimates of growth that are unbiased and (asymptotically) efficient. Using wage data on 51 manufacturing industries at three digit level of the National Industrial Classification 1998 (India), our estimation procedure obtains estimates of growth of real wages per worker that are deterministic in nature by accounting for any potential structural break(s). Our findings show that the inter-industry wage structure in India has changed a lot in the period 1973-74 to 2003-04 and that it provides some evidence that the inter-industry wage differences have become more pronounced in the post-reforms period. Thus this paper provides new evidence from India on the need to consider the hypothesis that industry affiliation is potentially an important determinant of wages when studying any relationship between reforms and wages.
    Original languageEnglish
    PublisherUniversity of Dundee
    Publication statusPublished - 2010

    Publication series

    NameDundee Discussion Papers in Economics
    PublisherUniversity of Dundee
    No.244
    ISSN (Print)1473-236X

    Fingerprint

    Industry
    Manufacturing sector
    India
    Wage structure
    Wages
    Real wages
    Workers
    Structural breaks
    Manufacturing industries

    Keywords

    • Growth rate
    • CAGR
    • AAGR
    • Unit roots
    • Trend stationary
    • Structural breaks
    • Real wages
    • Inter-industry wage structure
    • Average Annual Growth Rate (AAGR)
    • Compound Annual Growth Rate (CAGR)

    Cite this

    Chatterji, M., & Choudhury, H. (2010). The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04. (Dundee Discussion Papers in Economics; No. 244). University of Dundee.
    Chatterji, Monojit ; Choudhury, Homagni. / The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04. University of Dundee, 2010. (Dundee Discussion Papers in Economics; 244).
    @techreport{7e34447a165f4a848007fd5cd4429b76,
    title = "The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04",
    abstract = "This study examines the inter-industry wage structure of the organised manufacturing sector in India for the period 1973-74 to 2003-04 by estimating the growth of average real wages for production workers by industry. In order to estimate the growth rates, the study adopts a methodological framework that differs from other studies in that the time series properties of the concerned variables are closely considered in order to obtain meaningful estimates of growth that are unbiased and (asymptotically) efficient. Using wage data on 51 manufacturing industries at three digit level of the National Industrial Classification 1998 (India), our estimation procedure obtains estimates of growth of real wages per worker that are deterministic in nature by accounting for any potential structural break(s). Our findings show that the inter-industry wage structure in India has changed a lot in the period 1973-74 to 2003-04 and that it provides some evidence that the inter-industry wage differences have become more pronounced in the post-reforms period. Thus this paper provides new evidence from India on the need to consider the hypothesis that industry affiliation is potentially an important determinant of wages when studying any relationship between reforms and wages.",
    keywords = "Growth rate, CAGR, AAGR, Unit roots, Trend stationary, Structural breaks, Real wages, Inter-industry wage structure, Average Annual Growth Rate (AAGR), Compound Annual Growth Rate (CAGR)",
    author = "Monojit Chatterji and Homagni Choudhury",
    year = "2010",
    language = "English",
    series = "Dundee Discussion Papers in Economics",
    publisher = "University of Dundee",
    number = "244",
    type = "WorkingPaper",
    institution = "University of Dundee",

    }

    Chatterji, M & Choudhury, H 2010 'The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04' Dundee Discussion Papers in Economics, no. 244, University of Dundee.

    The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04. / Chatterji, Monojit; Choudhury, Homagni.

    University of Dundee, 2010. (Dundee Discussion Papers in Economics; No. 244).

    Research output: Working paperDiscussion paper

    TY - UNPB

    T1 - The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04

    AU - Chatterji, Monojit

    AU - Choudhury, Homagni

    PY - 2010

    Y1 - 2010

    N2 - This study examines the inter-industry wage structure of the organised manufacturing sector in India for the period 1973-74 to 2003-04 by estimating the growth of average real wages for production workers by industry. In order to estimate the growth rates, the study adopts a methodological framework that differs from other studies in that the time series properties of the concerned variables are closely considered in order to obtain meaningful estimates of growth that are unbiased and (asymptotically) efficient. Using wage data on 51 manufacturing industries at three digit level of the National Industrial Classification 1998 (India), our estimation procedure obtains estimates of growth of real wages per worker that are deterministic in nature by accounting for any potential structural break(s). Our findings show that the inter-industry wage structure in India has changed a lot in the period 1973-74 to 2003-04 and that it provides some evidence that the inter-industry wage differences have become more pronounced in the post-reforms period. Thus this paper provides new evidence from India on the need to consider the hypothesis that industry affiliation is potentially an important determinant of wages when studying any relationship between reforms and wages.

    AB - This study examines the inter-industry wage structure of the organised manufacturing sector in India for the period 1973-74 to 2003-04 by estimating the growth of average real wages for production workers by industry. In order to estimate the growth rates, the study adopts a methodological framework that differs from other studies in that the time series properties of the concerned variables are closely considered in order to obtain meaningful estimates of growth that are unbiased and (asymptotically) efficient. Using wage data on 51 manufacturing industries at three digit level of the National Industrial Classification 1998 (India), our estimation procedure obtains estimates of growth of real wages per worker that are deterministic in nature by accounting for any potential structural break(s). Our findings show that the inter-industry wage structure in India has changed a lot in the period 1973-74 to 2003-04 and that it provides some evidence that the inter-industry wage differences have become more pronounced in the post-reforms period. Thus this paper provides new evidence from India on the need to consider the hypothesis that industry affiliation is potentially an important determinant of wages when studying any relationship between reforms and wages.

    KW - Growth rate

    KW - CAGR

    KW - AAGR

    KW - Unit roots

    KW - Trend stationary

    KW - Structural breaks

    KW - Real wages

    KW - Inter-industry wage structure

    KW - Average Annual Growth Rate (AAGR)

    KW - Compound Annual Growth Rate (CAGR)

    M3 - Discussion paper

    T3 - Dundee Discussion Papers in Economics

    BT - The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04

    PB - University of Dundee

    ER -

    Chatterji M, Choudhury H. The changing inter-industry wage structure of the organised manufacturing sector in India, 1973-74 to 2003-04. University of Dundee. 2010. (Dundee Discussion Papers in Economics; 244).