Wage inequality across regions in India: Exploring the role of education and skills

Abstract

This study explores regional differences in wage inequality in India and examine various contributory factors for increasing disparities in wages across different regions in India. Using data from the India Human Development Survey (IHDS) 2011–12 and employing RIF regression methodology, the study investigates the influence of the level of education, experience, English and computer skills, gender, age, religion, and other background characteristics on wage inequality. The findings reveal that higher education levels, experience, English, and computer skills significantly contribute to wage disparities across regions. The study highlights the importance of addressing these factors to promote greater equity and inclusivity in the labor market.