Reflections of Wage Discrimination on Poverty: Assessment of Indian Rural Labour Market

Abstract

In this research paper, we have tried to probe the effect or reflections of wage discrimination on poverty. It is found that the differences in the wage determination process in the public and private sectors may result in earning differentials across socio-religious groups.  Many of the research community have been given data about discrimination in the labour market. In this particular paper, we have given the results of data interpretation for wage discrimination and its direct or indirect relation with poverty. The analysis has been presented for mainly three types of work; regular, casual and self-employed work. For the query of wage discrimination and its effect on poverty, we had divided the households into two parts, the first type of households whose household’s MPCE is below the poverty line and second whose household’s MPCE is higher the poverty line. The findings of the study make clear that the average daily wage for all type work of lower caste is less than the upper caste. The results also show that the poor household has found higher in lower caste in comparison to upper caste. The differences in the average wage-earning among the social groups for the same types of work may be the case of discrimination and poverty. The result argued to policymakers that they should frame an appropriate plan to address this issue and work for indiscrimination in the labour market and job creation in the rural areas.