The gender wage gap has still been a recurring and structural aspect of the Indian urban labour market, despite rising female literacy, educational attainment and labour market participation over the last ten years. This paper aims to investigate the level and the determinants of the gender pay gap in urban India using an econometric model. The study uses Ordinary Least Squares (OLS) regression to determine the independent effect of its variables on wages, including education, age (proxy of experience), sectoral employment, and the occupation type ,gender as a dummy variable. Although part of the wage disparity can be attributed to observable traits such as education and occupation, there remains a statistically significant portion that cannot be explained. This indicates structural inequalities and discrimination of women in the labour market in urban India. Considering India's vision of Viksit Bharat 2047, addressing gender wage inequality is important for achieving inclusive growth, social equity & sustainable economic development. The paper finds not only the need for human capital advancements but also institutional reforms, equal pay policies, encouraging formal jobs, and increased transparency in wage-setting processes.
Sharma et al. (Tue,) studied this question.
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