ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Evidence from Quantile Regression

Wage Penalty in Temporary Employment in India

The extent of wage penalty between workers in permanent and temporary jobs at different locations of the wage distribution is examined by evaluating the impact of workers’ characteristics and education. The differential effects of the covariates on wage gap at different locations of the wage distribution are estimated by applying the quantile regression model. After estimating the differential effects, the relevance of the glass ceiling or sticky floor hypothesis has been tested with Indian data. The wage gap between temporary and permanent employment is decomposed into the endowment effect based on the difference in labour market characteristics and coefficient effect based on the difference in returns for the same characteristics.



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Updated On : 7th Oct, 2019

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