The Impact of the Minimum Wage on Male and Female Employment and Earnings in India

Asian Development Review, Vol. 34, No. 1, pp. 28–64, 2017

37 Pages Posted: 8 Mar 2017

See all articles by Nidhiya Menon

Nidhiya Menon

Brandeis University - International Business School

Yana Rodgers

Rutgers University - Department of Women's and Gender Studies

Date Written: March 7, 2017

Abstract

This study examines how employment and wages for men and women respond to changes in the minimum wage in India, a country known for its extensive system of minimum wage regulations across states and industries. Using repeated cross sections of India’s National Sample Survey Organization employment survey data for the period 1983–2008 merged with a newly created database of minimum wage rates, we find that, regardless of gender, minimum wages in urban areas have little to no impact on labor market outcomes. However, minimum wage rates increase earnings in the rural sector, especially for men, without any employment losses. Minimum wage rates also increase the residual gender wage gap, which may be explained by weaker compliance among firms that hire female workers.

Keywords: Employment, Gender, India, Minimum Wage, Wages

JEL Classification: J52, J31, K31, O12, O14

Suggested Citation

Menon, Nidhiya and Rodgers, Yana, The Impact of the Minimum Wage on Male and Female Employment and Earnings in India (March 7, 2017). Asian Development Review, Vol. 34, No. 1, pp. 28–64, 2017. Available at SSRN: https://ssrn.com/abstract=2928816

Nidhiya Menon (Contact Author)

Brandeis University - International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States
781-736-2230 (Phone)
781-736-2269 (Fax)

Yana Rodgers

Rutgers University - Department of Women's and Gender Studies ( email )

162 Ryders Lane
New Brunswick, NJ 08901
United States
732-932-9331 (Phone)
732-932-1335 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
39
Abstract Views
304
PlumX Metrics