Wage Discrimination in India

Introduction

In all parts of the world, there is a great importance given to reduce the impact of the gender discrimination. More likely, there is a relevant influence and implications coming from the continuous economic and social development. Those developments and changes are widely recognized from the previous studies. In India, there is a demonstration about the informal market and other differential that affects the productivity of each group. The wage discrimination paid attention on most of the sectors and as the study continues, there are a high estimated effects or factors that affecting the labor and employment that fail to reduce the wage discrimination among males and females.

Objectives of the Study

The first objective of the study is to test whether there is a presence of wage discrimination between the male and female workers primarily in India. And second is to identify if there is an implication of the qualification of experiences among men and women that can affect their wages.

Importance of the Study

The study identified its importance in the literature as well in the Sri Lankan context because mainly, the study can derive the right thought about the discrimination in terms of wages. It also provided a great contribution in the global level because of its attribute to discover the typical discrimination and as it attempts to distinguish the different approach of discrimination of labors.

Hypothesis

As part of the Hypothesis of the study, there are present discriminations in terms of labor that makes the one of the two genders left behind. Usually, the victim in such discrimination is women because of the stigma of the working society that women should be and only belong inside the household. The main concept of the people in making this idea possible is based on their culture which holds a great influence in their everyday life. People of India, most likely required the number of the males because of the nature of their work.

Literature Review

Based on the neoclassical theories in labor market, the discrimination happens due to the increased competition especially in the industries that actively compete in the international market. This competition happens to reduce the wage gap among the industries. But in the arrival of the economic forces, the leaders drive down the profit margins that can create a great impact. The impact of the increased competitiveness affects the women’s relative wages which is common in the manufacturing sector of India (Menon and Meulen, 2007). The employment structure of the organized manufacturing industries in India, there are changes that makes the increase of the discrimination not only in gender but also in the use of the contract worker against the permanent workers. Both type of discriminations triggers in the issue of the job security and wage inequality (Bhandari and Heshmati, 2006). In the last recent years, India attempts to encourage the laws in labor that bounds to reduce the gender discrimination in the working industry (Penfold, 2009). They promote the gender quality that is usually emphasizes the women’s enjoyment in the use of their right through the economic opportunities, access of public goods, participation and decision-making, and employment (Deininger, Jin, and Nagarajan, 2006).

Methodology

The applied methodology encompasses the importance of data. In the demonstration of the market in the relation of the wages, there is great relevance in the use of the gender and their age in the study. Another variable is the level of the wages that both genders receive that can describe the level of poverty and/or the satisfaction of the necessities. Another important factor is the level of productivity that the males and females can produce under the same industry. The use of the three relevant data was supported by the comparative case studies that most lies or sets in Indian context. The application of the case studies or past-related literatures allows the study to measure the provided data and their functions as the determinants of wage discrimination. The use of secondary information allows the study to compare, comprehend, and digest all the learning into its own analysis and conclusion.

Conclusion

As characterized by the wage discrimination in the foreign markets, the India demonstrated an increasing wage level through their continuous effort for economic development. Through this relevant action, there is an identified failure in the reduction of wage discrimination. The large differences between the family and the hired labor also suggest that there is an improving access of the poor and the country’s strong industries facilitates the employment and promotion of productivity.

References:

Bhandari, A., & Heshmati, A., 2006. Wage Inequality and Job Security among Permanent and Contract Workers in India: Evidence from Organized Manufacturing Industries. [Online] Available at: http://www.ratio.se/pdf/wp/ah_inequality.pdf. [Accessed 15 Feb 2010].

Deininger, K., Jin, S., & Nagarajan, H., 2006. Gender Discrimination and Returns to Self-Employment, Evidence from Rural India. [Online] Available at: http://www.iza.org/conference_files/worldb2007/nagarajan_h3578.pdf. [Accessed 15 Feb 2010].

Menon, N., & Meulen, Y., 2007. International Trade Competition, Market Power, and Gender Wage Differentials in India’s Manufacturing Sector. [Online] Available at: http://people.brandeis.edu/~nmenon/Menon_Rodgers_India.pdf. [Accessed 15 Feb 2010].

Penfold, C., 2009. Off-Shored Services Workers: Labor Law and Practice in India. Economic and Labor Relations Review, Vol. 19, No. 2.