Wage Differentials in Urban, Peri-Urban and Residual Interiors of 3 Selected Metropolitan Cities

There are enough evidences to believe that women find themselves clustered in the low wage sectors. Though a large amount of workers are in the self-employed category, their wage rates cannot be calculated.[1] Table 7 shows that without any exception, women get lower wage rates compared to men. The wage rate levels, expectedly, are higher among the regular salaried workers, but in the rural areas, women’s wage rates are nearly 50 % lower than that of the men. In urban cores, the gender wage rate differential is the lowest among the regular salaried workers. However, this advantage drops significantly in the peri-urban areas, to a level a level slightly lower than the residual states. It may be recalled that though the share of the regular-salaried women were higher in two out of the three cities under consideration, they are paid around three fourth of their male counterparts.

Unlike the regular-salaried work, the wage rate differential is higher in the urban areas compared to the rural areas for casual work. The wage rates have gone

Table 7 Wage differentials among men and women in regular and casual work

Location

Spatial unit

Wages of regular and salaried workers (Rs.)

Wages of casual wage workers

(Rs.)

Male

Female

Ratio

Male

Female

Ratio

Rural

Peri-Urban

379

203

0.54

146

109

0.74

Residual

427

251

0.59

144

95

0.66

Urban

Urban Core

561

503

0.90

193

106

0.55

Peri-Urban

594

435

0.73

152

99

0.65

Residual

519

383

0.74

159

97

0.61

Source Calculated from NSSO Employment-Unemployment Round (68th), 2011-12

up recently in the rural areas due to National Rural Guarantee Schemes, and due to high women’s participation in this scheme, their bargaining power has become better. In the urban areas, though, highest wage differentials are observed in the urban core, and it becomes relatively less in the peri-urban regions. In sum, for the better nature of jobs, i.e. peri-urban areas are relatively less favourable for women compared to the other two spatial units, whereas for daily wage work, it is more advantageous compared to men. This is particularly the case in rural areas, which men are leaving due to low profitability, and this is truer for the peri-urban areas than for the residual states, explaining the favourable wage rate differentials.

The informal sector has experienced high growth in many of the developing countries, with a rise in various forms of informality of employment. The Report on Conditions of Work and Promotion of Livelihoods in the Unorganized sector states that the unorganized workers consists

of about 92 percent of the total workforce of about 457 million (as of 2004-05). For most of them, conditions of work are utterly deplorable and livelihood options extremely few. Such a sordid picture coexists uneasily with a shining India that has successfully confronted the challenge of globalization powered by increasing economic competition both within the country and across the world (GOI 2007, p. 1).

The informal sector does not capture all aspects of ‘informalisation’ of employment, since the formal sector is moving towards a greater informalization of work too. A part of the growing ‘informalisation’ of employment may be attributed to the globalization process of the economy. This is because enterprises tend to respond to competitive pressure in resorting to mixed-mode labour arrangements, in which observance of labour regulations for some workers is combined with the use of non-standard, atypical, alternative, irregular, precarious, etc., types of labour or various forms of subcontracting (Hussmanns 2004). Table 8 documents the high differences in the formal and informal employment as per the 68th round of NSSO Employment-Unemployment round. The advantages of being in formal employment is at least 3 times more wages for any of the location or sex. The urban-peri-urban areas hold higher advantages in formal employment vis-avis informal ones, which is even higher for women and translates into around 5 times higher wages. Such advantages are more in the residual states of rural areas, compared to the peri-urban areas, both for men and women. The incidence of

Table 8 Comparison of wage rates among formal and informal workers

Location

Sex

Informal

Formal

Ratio

Rural

Male

Peri-Urban

158

560

3.54

Residual

159

613

3.84

Female

Peri-Urban

112

344

3.06

Residual

98

416

4.25

Urban

Male

Urban Core

286

954

3.34

Peri-Urban

231

933

4.04

Residual

State

200

746

3.73

Female

Urban Core

239

909

3.80

Peri-Urban

160

771

4.83

Residual

State

124

663

5.37

Source Calculated from NSSO Employment-Unemployment Round (68th), 2011-12

informalization, however, is higher among women then men in rural areas (about 92 %), and is about the same as men in the urban areas (about 75 %).

  • [1] City wise differences have not been estimated due to small samples in each category.
 
Source
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