Home / Knowledge / News / Apparel/Garments / Higher exports widen wage inequalities in India: WB, ILO

Higher exports widen wage inequalities in India: WB, ILO

06
Mar '19
Higher exports widen wage inequalities in India: WB, ILO
A rise in exports can lead to higher wages in India, mostly for educated and urban workers, and accelerate a shift from casual to formal sector jobs. However, it would also lead to greater wage inequalities and would not actually grow the total labour market, the World Bank (WB) and the International Labour Organisation (ILO) said in a recent report.

The report, titled ‘Exports to Jobs: Boosting the Gains from Trade in South Asia’, suggested policy changes to ensure that the gains from higher exports benefit a wider population.

It assessed the efficacy of increased exports in dealing with jobless growth, whereby the labour market has not kept pace with the region’s high gross domestic product (GDP) growth.

A fresh econometric analysis proved that higher exports went hand-in-hand with higher wages.

“If the value of India’s exports increases by $100 per worker, average annual wages would increase by ₹572 per worker,” the report estimated. However, the wage improvement was larger for college graduates and urban workers; men benefited slightly more than women; and rural workers and less-educated workers did not benefit. Thus, higher exports also led to higher wage inequalities.

The report noted some benefits for lower-skilled workers in terms of the formalisation of jobs. “Increased exports can explain the conversion of about 8,00,000 jobs from informal to formal between 1999 and 2011, representing 0.8% of the labour force,” it said.

However, higher exports did not correlate with higher aggregate employment of local labour markets, it cautioned.

While an increase in labour demand might change the mix between formal and informal sector populations, it would not raise the actual size of the local labour market, mostly because of the cost of moving and the lack of unemployment insurance or any other form of income support, the report added. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 25th Sep 2021

EU extends GSP plus status for Pakistan with 6 new conventions

The European Union (EU) has extended its general system of...

Pic: Shutterstock

Apparel/Garments | On 25th Sep 2021

Bangladesh seeks Russian support for ensuring direct exports there

Bangladesh commerce minister Tipu Munshi recently sought Russian...

Pic: Boris-B / Shutterstock.com

Retail | On 25th Sep 2021

US’ Halloween spending to reach $10.14 bn this year: NRF

Consumer spending in the US on Halloween-related items is expected to ...

Interviews View All

Vandana Narang, National Institute of Fashion Technology

Vandana Narang
National Institute of Fashion Technology

Campus placements are low due to lockdowns

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Ensured payment of fee was least concern for students

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Alberto Gotti,

Alberto Gotti

Danitech was born from the will of a group of technicians to offer the...

Susanna Koelblin,

Susanna Koelblin

Founded in 1920, Eastman is a global specialty materials company that...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Dr. Sean Blamires, Evolution and Ecology Research Centre

Dr. Sean Blamires
Evolution and Ecology Research Centre

Using spider silk for clothing may not seem to be an attractive...

Karan Bose, Hula Global

Karan Bose
Hula Global

Hula Global, a leading isolation gown manufacturer in India, has been...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Aprajita Toor, Aprajita Toor

Aprajita Toor
Aprajita Toor

The creations by <b>Aprajita Toor</b> were born out of a deep desire to...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search