Gender Wage Gap among Salaried Workers in India: Results of a Principal Component Analysis of State Level Statistics

Abstract

Gender gap in wages is a major labour market discourse in policy circles and academia in India. Despite having many Constitutional provisions calling for removal of all gender based discrimination, wage inequality across gender and race is a reality and it varies widely in terms of its intensity across States. This paper makes an attempt to study the dynamics of gender gap in wages of salaried class workers Indian states. The paper recognises the need to study the extent to which gender plays a role in determining wages. This is particularly necessary for evolving effective labour market policies in the country. On the basis of principal component analysis on the reported State level aggregates of various gender specific information, the paper argues that the policies for removal of gaps in skills and other demand influencing variables may be necessary, but not sufficient conditions for ensuring gender equality in wages. Rather, variables explaining the level of participation of women in decision making in different walks of their social and economic life and other supply side factors may explain the gender gap in wages among salaried class workers.