Wage differentials between sexes in India - an explanation

Abstract

Persistent wage differential between male and female workers in any economy is generally sought to be explained by the hypotheses of job discrimination or sex discrimination. In the conditions prevalent in the Indian labour market, these two hypotheses do not appear to be convincing. Alternatively, labour market imperfection and segmentaiton of labour market into male and female labour with distinct supply characteristics are considered to be the main factors behind the wage differential between the sexes. It is the profit maximizing behaviour of the wage discriminating monopsonists rather than personal preferences and prejudices of employers against females that gives rise to the persistent wage differential between equally skilled and experienced men and women workers.