This article gives an overview of various dimensions of wage inequality prevalent in India. Consumption data corroborates horizontal and vertical inequality across regions and sectors. High growth has not seen a proportional increase in wage-income shares of GDP, in fact, it is decreasing. The author highlights the rural-urban, regular-casual and gender dimensions of inequality in pay. The article suggests that it is important to improve the rate of growth of wages, adjusted to inflation, over the next few years, in order to take care of overall inequality.

Dimensions of Wage Inequality in India