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Published Paper Details:
Evaluating the Impact of Minimum Wage Policies on Economic Inequality in India.
Authors
Nusrat Ali Rizvi
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Keywords
Keywords: Minimum Wage, Economic Inequality, India, Labor Market, Income Distribution.
Abstract
Abstract:
For a long period, minimum wage policies have been considered an indispensable instrument for alleviating income disparity and enhancing low-income workers' lives. When it comes to India, even though economic inequality continues to challenge the country significantly, the development and effectiveness of minimum wage legislation are worth focusing on. This research assesses the impact of minimum wage policies on economic inequality in India, examining their role in reducing wage gaps, enhancing living standards for workers, and labour market dynamics. The research takes a mixed-methods approach and combines quantitative analysis of wage data from the Periodic Labour Force Survey (PLFS) with qualitative insights drawn from interviews with policymakers, employers, and workers across formal and informal sectors. The findings show that minimum wage policies have, in fact, led to moderate improvements in wage levels for specific sections of the workforce, but they have had a limited impact on overall economic inequality. Regional disparities, weak enforcement mechanisms, and the prevalence of informal employment all undermine the effectiveness of these policies. The study even shows the 'unintended' effects that may arise when minimum wages go up, causing potential job loss in small scale industries and raising informalization. The paper advances a more extensive policy framework-integrating regulations on minimum wage with broader protection measures, and skill development program and stronger enforcements to find out the base causes of such economic inequality. This research will join the on-going debate concerning minimum wage policies for developing economies while providing policymakers within India with much-needed, fact-based advice to inform future directions. Since such a context - that is one of labour markets in India specifically - holds special relevance to those low- and middle-income nations facing these difficulties, it remains relevant even here.
IJCRT's Publication Details
Unique Identification Number - IJCRT2502195
Paper ID - 276946
Author type - Indian Author
Page Number(s) - b572-b583
Pubished in - Volume 13 | Issue 2 | February 2025
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No Of Downloads - 101
Author Country - India, 474002, Gwalior, Gwalior, 474002, Arts1 All
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Nusrat Ali Rizvi, "Evaluating the Impact of Minimum Wage Policies on Economic Inequality in India.", International Journal of Creative Research Thoughts (IJCRT), ISSN:2320-2882, Volume.13, Issue 2, pp.b572-b583, February 2025, Available at :http://www.ijcrt.org/papers/IJCRT2502195.pdf
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