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Productivity-Wage Divergence: Evidence from Indian Manufacturing Sector

Year: 2025

Type: article

Abstract: The study explores the long-term relationship between real wages and labour productivity growth in India?s organised manufacturing sector, using panel data from 23 industries between 1999-2000 and 2017-18. Applying two-step System GMM, it confirms the efficiency wage hypothesis. Productivity is positively influenced by capital intensity and contract labour, but negatively by the male workforce share.

Source: International Journal of Science and Research (IJSR)

DOI: 10.21275/sr25731160345

Author: D P Priyadarshi Joshi

Institution: Gangadhar Meher University

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: diamond

OpenAlex ID: W4412849643