This study reflects on the inter-regional wage variations. If labour is highly mobile then as per the neoclassical constellation wages are expected to get equalized across space. But the variations in wages and earnings across the Indian states are seen to be significant. This prompted us to investigate the wage variation issue further. The factors considered in the study include physical infrastructure, financial infrastructure, health, growth indicator, prices, policy variable such as minimum wage set by the state governments and the fiscal deficit, which may impact on wages across space. Findings are indicative of the fact that wages and earnings respond to the infrastructure and health related indicators. Economic growth and productivity rise also show a positive impact. Besides, the minimum wage policy of the government is seen to be effective, particularly in the case of those who are located at the lower rungs. The real wages/earnings do not show any significant responsiveness to price index though the association is not totally absent. Finally, the policy implications of the study are brought out.
| Published in | Journal of World Economic Research (Volume 14, Issue 1) |
| DOI | 10.11648/j.jwer.20251401.12 |
| Page(s) | 13-25 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2025. Published by Science Publishing Group |
Inter-regional, Wages, Productivity, Infrastructure, Minimum Wage, Labour, Sector
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APA Style
Mitra, A., Mishra, S. (2025). Wages Across Regions: Responsiveness to Macro and Policy Variables. Journal of World Economic Research, 14(1), 13-25. https://doi.org/10.11648/j.jwer.20251401.12
ACS Style
Mitra, A.; Mishra, S. Wages Across Regions: Responsiveness to Macro and Policy Variables. J. World Econ. Res. 2025, 14(1), 13-25. doi: 10.11648/j.jwer.20251401.12
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Download@article{10.11648/j.jwer.20251401.12,
author = {Arup Mitra and Sarthak Mishra},
title = {Wages Across Regions: Responsiveness to Macro and Policy Variables
},
journal = {Journal of World Economic Research},
volume = {14},
number = {1},
pages = {13-25},
doi = {10.11648/j.jwer.20251401.12},
url = {https://doi.org/10.11648/j.jwer.20251401.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20251401.12},
abstract = {This study reflects on the inter-regional wage variations. If labour is highly mobile then as per the neoclassical constellation wages are expected to get equalized across space. But the variations in wages and earnings across the Indian states are seen to be significant. This prompted us to investigate the wage variation issue further. The factors considered in the study include physical infrastructure, financial infrastructure, health, growth indicator, prices, policy variable such as minimum wage set by the state governments and the fiscal deficit, which may impact on wages across space. Findings are indicative of the fact that wages and earnings respond to the infrastructure and health related indicators. Economic growth and productivity rise also show a positive impact. Besides, the minimum wage policy of the government is seen to be effective, particularly in the case of those who are located at the lower rungs. The real wages/earnings do not show any significant responsiveness to price index though the association is not totally absent. Finally, the policy implications of the study are brought out.
},
year = {2025}
}
TY - JOUR T1 - Wages Across Regions: Responsiveness to Macro and Policy Variables AU - Arup Mitra AU - Sarthak Mishra Y1 - 2025/01/24 PY - 2025 N1 - https://doi.org/10.11648/j.jwer.20251401.12 DO - 10.11648/j.jwer.20251401.12 T2 - Journal of World Economic Research JF - Journal of World Economic Research JO - Journal of World Economic Research SP - 13 EP - 25 PB - Science Publishing Group SN - 2328-7748 UR - https://doi.org/10.11648/j.jwer.20251401.12 AB - This study reflects on the inter-regional wage variations. If labour is highly mobile then as per the neoclassical constellation wages are expected to get equalized across space. But the variations in wages and earnings across the Indian states are seen to be significant. This prompted us to investigate the wage variation issue further. The factors considered in the study include physical infrastructure, financial infrastructure, health, growth indicator, prices, policy variable such as minimum wage set by the state governments and the fiscal deficit, which may impact on wages across space. Findings are indicative of the fact that wages and earnings respond to the infrastructure and health related indicators. Economic growth and productivity rise also show a positive impact. Besides, the minimum wage policy of the government is seen to be effective, particularly in the case of those who are located at the lower rungs. The real wages/earnings do not show any significant responsiveness to price index though the association is not totally absent. Finally, the policy implications of the study are brought out. VL - 14 IS - 1 ER -
Faculty of Economics, South Asian University, New Delhi, India
Department of Economics, Delhi School of Economics, Delhi, India
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