Low Pay Among Wage Earners and the Self-employed in IndiaInternational Labour Review

Abstract: While inequality and poverty in India have been much studied, little attention has been given to the underlying role of the labour market. To help remedy this gap, the authors examine low pay in India, giving particular attention to its magnitude, characteristics and determinants. An absolute low-pay threshold is calculated that, if reached, would provide workers with a decent livelihood. Using household-level micro-data that cover wage earners and the self-employed, the authors find that roughly half of India’s workforce is low-paid, revealing a serious “decent work” deficit. They propose policies to improve wages and productivity and thereby boost earnings.