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Gender segregation and wage differentials in India: the role of educational attainment and occupational choices

Gender segregation and wage differentials in India: the role of educational attainment and... The purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap.Design/methodology/approachThe author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap.FindingsThe results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas.Originality/valueWhile much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Manpower Emerald Publishing

Gender segregation and wage differentials in India: the role of educational attainment and occupational choices

International Journal of Manpower , Volume 42 (1): 20 – Mar 10, 2021

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0143-7720
DOI
10.1108/ijm-10-2019-0466
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap.Design/methodology/approachThe author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap.FindingsThe results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas.Originality/valueWhile much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation.

Journal

International Journal of ManpowerEmerald Publishing

Published: Mar 10, 2021

Keywords: Education; Occupation; Segregation; Wage differentials; India

References