Analysis of Changes in Wage Rates in India

Analysis of Changes in net income Rates in IndiaCACP The data come which is an important source for absorbs in rural India unfortunately does non publish the engage data from these studies. The cost of cultivation scheme collects data from the selected household at regular intervals on all aspects of farm business. The paygrade of human labor has always been a problematic issue for the CACP. on that point is however a number of limitations associated with this data such as privation of data for m whatsoever crops, problem in aggregating the data from the evince level, unavailability of data at the state level etc.The four graphic symbol points accommodate been use to look at a change in the profit tramp. However, the choice of reference points in the study permit been special(a) to the years 1983 and 1987-88 in the 80s and 1993-94 in the 90s.AWI Wage Rate It is the most widely used source for analyzing trends in absorb appreciate for rural India. However, one given problem noticed by the researcher with respect to AWI is the time lag in the data and the system of aggregating all the data for th states and all India level. There were many studies performed to infract the bonny lucre rate of agitateer in different part of India by many previous researchers. However in all these studies used simple average of hire evaluate in different months to fuck off at the annual figures. Also, all these studies used population of uncouth labourers from the number as weights to arrive at the absorb rate. The average AWI salary rate is 30-40 portion extravagantlyer as comp ard to the RLE/NSS estimates of net rate. It was as easily studied that the AWI wage place were found to be marginally upwards biased as comp bed to the FMS estimates of honorarium.A look at the wage trends from AWI since 1980-81 suggests that the wage place have generally been higher in Punjab, Haryana, and Kerala as compared to the other fresh states in the 80s. How ever, by the end of 1990, Gujarat and West Bengal have seen to have made a world-shaking contribution and is closer to the traditional high wage order. Rajasthan, on the other hand which was closer to the traditional high wage pass judgment has fallen behind and is considerably lower than Kerala, Punjab and Haryana. The states on the lower ends of the wage rate are Orissa, Bihar, Madhya Pradesh, Maharashtra, and Andhra Pradesh. Keralas wage rate is found to be three times those in Orissa and in Punjab and Haryana they are twice the wage rate in Orissa. Wages have continued to grow in all three time compass points but there was a significant slowdown in the wage rate during the period 1987-88 and 93-94. For the period 1987-88 to 1993-94, which as well included the year of the financial crisis and the consequent economic reforms, wage evaluate launch a deceleration in almost all the states as well as the all India level. This reject in the growth of takings is sharper for And hra Pradesh, Assam, Bihar, Gujarat, and Karnataka.Wage trends from CACP In the study it was found out that this wage rate had been created by aggregating over crops using crop specific weights for singular states. Wage evaluate from CACP are generally found to correlate well with the AWI series in spite of the differences in methodology of collection of data. In fact, for both 1983 and 1987-88, wage rates from CACP show a very high correlation coefficient of 0.95 with the AWI wage rates. It was too analyzed in the study that wage rates from CACP show better growth rates in 1987-88 and 1993-94 as compared to the AWI series. Rajasthan turns out to be an exception which showed markedly improved wage rates as showed by AWI wage series. Even for other states, CACP does not show as sharp a deceleration as AWI. Maharashtra on the other hand shows sharp deceleration in the wage rate during 1987-88 and 1993-94.NSS These wage rates were found to be statistically more significant and te sted than that of AWI or CACP because of their consistent and superior sampling framework but they also allow for a much higher level of disaggregation. The wage rates reported by NSS for masculines for countrified occupations are considerably lower than the wage rates reported by AWI. It was raise studied that the NSS rates were very well correlated with the rates of AWI series with a correlation coefficient of well-nigh 0.9 in the 1980s, 0.87 in 1993-94 and 0.95 in 1999-00. However, again for most states there was a deceleration in the growth rate during the next sub period that is, mingled with 1987-88 and 1993-94. Except for the state of Gujarat, deceleration was seen for almost all states. Gaps between agricultural and non agricultural pay narrowed down considerably in Punjab and Rajasthan. West Bengal and Karnataka were found to be the states having the lowest divergence between agricultural and non agricultural activities. Comparison between agricultural and non agricult ural activities gender wise was also performed. It was analyzed that the growth rates in these activities in males suggested that in 1983-84 and 87-88 agricultural wages grew faster than non agricultural wages. For females, however non agricultural wages grew faster than agricultural wages.RLE/ALE wage trends RLE uses a subset of households from the NSS employment and unemployment quinquennial surveys. The household types are either self employed in farming, non agriculture, agriculture labour, other labour and others. A semblance of the wage rate from the NSS and the RLE reveal that there is a high degree of correlation between them especially in the 1990. This is accredited not only at the all India level but also at the state level. For the period from 1983-1987, growth rates from RLE were shown to be 70-80 percent higher than the ones shown by the NSS series in the study. The growth rate of the NS were correspondent to those studied by AWI or CACP for many states, however t he RLE suggests growth rates higher than any of these. Further it was also studied that the growth rate of wages in agriculture are much higher than those suggested by NSS or CACP or AWI. There was also an inter range comparison done in this study to check the difference in wages under the RLE scheme. It was analyzed that comparing the 1977 RLE scheme to that of 1983, real wage rates declined by almost 10 percent for the latter. Such a decline in wage rate is not accompanied by any other wage estimates including those from NSS.WRRI Wage rates from eleven agricultural trading operations and seven non agricultural operations. For wage rates for agricultural operations, simple average of sowing, transplanting, weeding, harvesting, winnowing and threshing was taken as the representative wages. The analysis in the study was based for the years 1990-2000 and 2002-03. It was studied that the wage rates from WRRI for agriculture than those reported by NSS and RLE for males and almost 60 p ercent higher for females. WRRI estimates of wage rates are found to be closer to the CACP or AWI estimates because of resemblance in methodology and sources. WRRI is the only estimate that is available after 1999-00. It was further analyzed in the study that the wage rates between male and female for agricultural occupations as well as non agricultural occupations have grown in real terms. Coming to the state wise analysis, Bihar and Orissa are the states that saw the highest growth rates of wages for both males and females. The other state that achieved close to 10 percent per annum growth rate of wages is Kerala. away from Kerala, the other two states Andhra Pradesh and Tamil Nadu saw slower growth rates of wages. Uttar Pradesh having a large concentration of poor and rural labourers witnessed growth rates of less than two percent in both agricultural and non agricultural operations.