Jacoby, Hanan G.Dasgupta, Basab2015-11-042015-11-042015-09https://hdl.handle.net/10986/22849This paper documents the changing structure of wages in India over the post-reform era, the roughly two-decade period since 1993. To investigate the factors underlying these changes, a supply-demand framework is applied at the level of the Indian state. While real wages have risen across India over the past two decades, the increase has been greater in rural areas and, especially, for unskilled workers. The analysis finds that, in rural areas, the changing wage structure has been driven largely by relative supply factors, such as increased overall education levels and falling female labor force participation. Relative wage changes between rural and urban areas have been driven largely by shifts in employment, notably into unskilled-intensive sectors like construction.en-USCC BY 3.0 IGOJOBSSKILL‐UPGRADINGEMPLOYMENTRURAL DIVIDEPRODUCTIONLAGSEMPLOYMENT SHAREPREVIOUS SECTIONINCOMESERVICE SECTORAGRICULTURAL PRODUCTIONEMPLOYMENT OPPORTUNITIESWAGE‐EARNERBASE‐YEARRURAL LABOR MARKETSGROUP WORKERSLABOR FORCEINFORMATIONELASTICITYPOST-REFORMWELFAREJOBEFFECTSWAGE INCREASESLABOR ECONOMICSVARIABLESPAYING JOBSRURAL LABORINPUTSRETAIL TRADELABOR FORCE PARTICIPATIONREAL WAGESSOCIAL PROGRAMSASSOCIATIONSMEASURESWAGE GROWTHECONOMIC ANALYSISTRENDSDRIVERSPOVERTY REDUCTIONAGRICULTURAL WAGEPUBLIC‐WORKSLABOR MARKETEARNINGS INEQUALITYURBAN EMPLOYMENTWAGE‐GROWTHINDUSTRY WAGEWORKERSELF‐EMPLOYEDMARKETSORGANIZATIONSAGRICULTURAL PRICESCOMPETITIVE MARKETLABORPRODUCTELASTICITY OF SUBSTITUTIONTOTAL EMPLOYMENTRURAL SERVICESRURAL WAGESPUBLIC WORKS PROGRAMFINANCEREAL‐ WAGEFEMALE LABORWAGE GAINSUNEMPLOYMENTSKILL PREMIUMPUBLIC‐ WORKS PROGRAMGENERAL EQUILIBRIUMRURAL COUNTERPARTSWORKERSWAGESDEFLATORSECONOMETRIC ANALYSISLABOR MARKET INTERVENTIONRURAL SECTORLABOR DEMANDREAL WAGEHOUSEHOLD ENTERPRISEWAGE INEQUALITYVALUERURAL FEMALECASUAL WORKERSRURAL GROWTHDEMANDWAGE PREMIUMAGRICULTURAL SECTORAGRICULTURELABOR MARKET INSTITUTIONSLABOR MARKET OUTCOMESEMPLOYMENT GROWTHRURALMEASUREMENTRURAL WORKERSMARKETPUBLIC WORKSTRADE LIBERALIZATIONRURAL EMPLOYMENTPUBLIC‐WORKS PROGRAMECONOMICSPRODUCTION FUNCTIONPUBLIC‐ WORKSEMPLOYMENT IN AGRICULTUREREGRESSION ANALYSISEMPLOYMENT GUARANTEEINSURANCEWAGE STRUCTURETRADESAFETY‐NETGROWTH RATEPOVERTYRURAL AREASFEMALE LABOR FORCESUPPLYLABOR SUPPLYCONSUMER PRICE INDEXUNSKILLED WORKERSPOORFOOD PRICESLABOR MARKETSOUTCOMESSAFETYUNSKILLED LABORSELF‐EMPLOYMENTWAGE EMPLOYMENTLABOR SHAREPRICESMARKET WAGEWAGE‐PREMIUMINEQUALITYDEVELOPMENT POLICYWorking PaperWorld Bank10.1596/1813-9450-7426