A Note on Recent Trends in Wage Rates
in Rural India

Yoshifumi Usami

Research Fellow, Center for Evolving Humanities, The University of Tokyo. yoshiusami@gmail.com.

Introduction

This is a short note on recent trends in wage rates for agricultural and rural labour, as reported by the Labour Bureau, Government of India, in Wage Rates in Rural India (WRRI). There are two data sources relating to agricultural and non-agricultural wages in rural India. One is the well-known Agricultural Wages in India (AWI), collected and reported by the Directorate of Economics and Statistics, Ministry of Agriculture; and the other is the one that is taken up here for study. AWI has a long history, and has been widely used for analysing long-term changes in the wage rates of agricultural and rural labour. However, since these data are collected through a local-level administrative institution, the AWI has several limitations, which pose substantial difficulties to users.1 In addition, the AWI is presently available for up to 2004–05 only, and it is therefore not possible to look at recent trends in agricultural wages, and to measure any impact of macroeconomic growth or of schemes under the widely propagated NREGA (National Rural Employment Guarantee Act).

WRRI data, on the other hand, have been collected since 1986–87, although they were not published for some time, and the Labour Bureau took up the compilation of wage rate statistics from the agricultural year 1995–96. One of the merits of the WRRI data is that they are available for up to 2008–09, and hence are more appropriate to study recent trends. The purpose of this note is to review the WRRI data, and to find the salient features of recent trends in agricultural and non-agricultural wage rates.

WRRI: Methodological Problems

In accordance with the recommendation made by the Technical Working Group on Rural Retail Prices set up by the National Sample Survey Organization (NSSO), the wage rates of 18 agricultural and non-agricultural occupations have been collected every month, from a fixed set of 600 sample villages spread over 20 States, since 1986–87. The wage rate data are collected by the NSSO along with the rural retail price data in schedule No. 3.01 (R).

The primary data sources are village functionaries like the Panchayat Secretary, Progress Assistant, Patwari, and other village or block-level officials. The data on normal working hours and on wage rates for the reported working hours are collected sex-wise for each of the 18 selected occupations. The wage rates thus collected are then normalized for an eight-hour working day. In the next stage, the simple arithmetic average of these normalized daily wage rates is worked out for each State. The daily wage rates at the all-India level until 1999–2000 were derived by taking a simple average of State figures, but after 2000–01, by taking a simple average of all the sample villages. The all-India figures before and after 2000 are therefore not compatible.

Compared with the AWI data, the collection and compilation of the WRRI data are regarded as methodologically more reliable with respect to sampling method, in the fact that data are collected by trained NSS investigators and in the estimation of average wage rates. Nevertheless, there is a problem with the WRRI data that it shares with the AWI data, namely that the wage rates are not always reported from all the sample villages. This is for the following reasons:

(i)

the activity connected with the occupation was not undertaken in the village;

(ii)

the activity was out of season in the village; or

(iii)

the particular category of workers (i.e. men/women/children) was not engaged in that occupation.

This fact, that the number of sample villages may vary, causes a serious problem, particularly in a State where wage rates differ greatly across sample villages due to reasons such as closeness to urban centres. The State’s average wage rate falls when no wage rates are reported from some of the high wage rate villages, and vice-versa. Fluctuation of the monthly wage rate is therefore not always real, but because of variations in the number of reporting sample villages. In an attempt to avoid this problem, State-wise average daily wage rates are not reported in the WRRI if the reporting number is less than five. However, this does not solve the problem. Irregular fluctuations can be observed in the movement of monthly wage rates in any occupation, particularly in small States like Himachal Pradesh and Jammu & Kashmir.

Varieties of crops are grown depending on the agro-climatic and economic conditions of a region. Agricultural operations are seasonal. An operation like sowing or harvesting, for example, is performed for different crops in different seasons and in different regions, and, as a result, the mode and amount of payment may differ from one crop to the other. Nevertheless, it is common for wage rates to be reported throughout the year even if it is unlikely that a particular operation for a particular crop is performed every month. It is therefore plausible that seasonal fluctuations in wage rates, where they occur, reflect operations for different crops.

In addition, there are several outliers that are likely to be errors at some stage in the data collection or in the data entry.

In order to avoid (not solve) these problems, we took annual averages for the agricultural year (July to June) instead of monthly data. We worked out the arithmetic means only for those years for which data were available for four months or more. This was on the assumption that the average wage rate of certain operations in a particular State indicates operations for a set of crops or a crop mix in the State.

There is another problem that enters here. The demarcation of the agricultural year corresponds mainly with harvesting. Operations like ploughing, sowing, and transplanting of the kharif crop, however, are usually performed in the months of May–August. Thus, if we adopt the average based on agricultural year for these operations, it would reflect the wage rate for kharif crops of the succeeding year. Therefore we took the 12-month period from May to April to work out the average wage rates of ploughing, sowing, and transplanting.

In order to cover the major operations in farming and other important occupations in rural areas, and considering data availability, the wage rates of five agricultural operations, i.e. ploughing (male), sowing (male), transplanting (male and female), weeding (female), and harvesting (male and female), and of four rural labour occupations, i.e. carpenter (male), blacksmith (male), mason (male), and unskilled labour (male and female), are taken up for this study. Looking at the wage rates for various occupations allows us to examine the relationships among them. To compute real wage rates, the nominal wage rates are deflated by the consumer price index for agricultural labourers (CPIAL) and the consumer price index for rural labourers (CPIRL) (1986–87 = 100).2

Levels and Growth of Real Wages
for Agricultural and Rural Labourers

Table 1 indicates the State-wise real wage rates for major occupations from 1998–99 to 2008–09 in rural India. Based on these wage rates, we will look into some aspects of recent trends in wage rates of agricultural and rural labour.

Table 1 State–wise real wage rates for major occupations in rural India

(A) Ploughing (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

17.30

16.49

17.31

17.76

18.22

17.29

16.86

18.09

18.79

20.50

22.75

Assam

20.32

20.18

20.25

20.91

19.60

20.21

19.56

18.78

18.71

19.65

18.96

Bihar

14.48

14.89

16.77

17.99

18.55

18.67

18.54

18.33

18.31

18.62

18.99

Gujarat

17.76

17.78

18.70

20.11

20.08

20.26

21.10

20.78

20.02

20.49

21.35

Haryana

22.40

24.87

26.33

24.75

25.37

24.73

25.15

24.57

24.90

25.34

26.30

Himachal Pradesh

31.15

31.45

32.76

34.28

33.70

36.91

39.53

37.69

38.98

44.41

48.16

Jammu & Kashmir

29.15

28.68

33.96

35.47

35.50

35.11

34.94

34.55

32.38

31.29

29.91

Karnataka

15.10

15.45

17.75

18.65

18.02

17.46

16.85

17.80

17.48

17.71

18.80

Kerala

58.94

57.11

59.83

70.32

74.76

71.15

61.03

60.80

61.24

68.18

64.07

Madhya Pradesh

14.85

14.60

14.38

15.44

15.59

15.81

15.63

14.82

14.15

14.89

15.52

Maharashtra

16.83

17.70

19.49

19.43

19.46

18.88

17.80

17.68

18.17

18.95

19.46

Manipur

18.35

18.55

20.40

20.46

20.25

22.22

22.87

21.93

21.16

24.68

26.96

Meghalaya

17.54

17.05

16.74

16.56

19.74

22.59

22.52

22.08

20.91

20.11

18.61

Orissa

14.09

12.50

15.34

17.81

18.41

17.18

17.81

17.71

16.66

15.89

16.39

Punjab

21.33

21.44

na

na

na

na

na

na

na

na

na

Rajasthan

25.37

24.43

26.57

28.78

27.54

25.70

26.66

23.52

22.29

25.99

26.07

Tamil Nadu

30.24

34.81

37.06

37.62

34.81

33.49

32.47

32.00

32.41

34.57

32.73

Tripura

14.81

16.09

16.55

18.31

18.49

22.88

20.74

22.85

23.76

22.29

23.70

Uttar Pradesh

15.79

16.87

18.44

18.02

18.16

18.11

17.96

17.40

16.58

17.02

18.34

West Bengal

20.03

23.00

23.92

23.73

25.44

26.26

24.92

27.22

27.76

27.49

26.48

India

21.90

22.35

21.72

22.26

22.37

22.18

21.25

21.35

21.00

21.82

22.06

(B) Sowing (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

13.53

12.88

14.18

14.46

14.78

14.57

14.98

15.15

16.27

18.12

18.83

Assam

14.61

15.09

16.63

17.07

16.83

18.46

18.32

18.67

18.62

19.48

19.04

Bihar

14.42

14.65

16.39

17.19

18.06

17.86

17.53

17.24

16.55

16.36

16.50

Gujarat

16.95

17.03

17.75

18.96

18.97

19.17

19.61

18.72

18.48

18.66

18.94

Haryana

21.26

24.41

25.03

25.04

25.30

23.72

24.08

25.16

24.67

24.73

26.29

Himachal Pradesh

27.08

30.60

35.34

34.00

33.38

33.95

na

na

na

36.44

37.52

Jammu & Kashmir

24.73

24.25

27.51

31.34

32.05

34.02

34.53

33.14

28.28

30.76

29.79

Karnataka

15.06

15.39

16.85

17.30

16.51

15.88

15.39

14.56

16.12

16.03

16.44

Kerala

43.89

48.39

52.70

55.15

53.31

51.26

53.04

51.68

54.36

53.08

52.60

Madhya Pradesh

13.86

14.68

14.32

14.80

14.86

15.51

15.18

13.99

13.20

13.25

13.66

Maharashtra

15.87

16.08

17.56

18.29

18.19

18.05

16.98

16.60

16.86

17.37

18.13

Manipur

17.60

16.66

19.30

18.04

16.72

18.74

19.32

18.52

17.97

18.18

19.39

Meghalaya

16.29

15.46

16.40

16.27

18.17

20.34

20.76

20.31

19.65

19.03

18.02

Orissa

13.88

12.03

13.71

15.50

16.96

16.35

16.40

16.98

15.80

14.40

15.80

Punjab

22.13

22.23

23.10

24.97

na

25.19

24.16

22.43

21.50

22.35

23.01

Rajasthan

24.57

24.00

27.20

30.80

29.05

25.47

25.80

24.09

20.54

22.03

21.65

Tamil Nadu

21.61

21.90

22.48

23.51

21.48

20.99

21.73

21.17

22.03

22.95

22.52

Tripura

14.81

16.09

16.42

18.31

18.43

21.08

20.74

22.85

23.76

22.27

23.70

Uttar Pradesh

15.47

16.37

17.98

17.79

17.64

17.63

17.41

16.60

15.76

16.71

17.80

West Bengal

14.17

15.43

16.87

17.09

17.64

16.81

16.62

17.85

18.57

18.29

18.19

India

19.22

19.84

19.52

19.87

19.58

19.63

19.40

19.17

18.95

18.93

19.32

(C) Transplanting (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

14.42

12.85

13.62

15.81

16.07

15.01

15.09

14.87

16.13

16.43

20.88

Assam

15.18

16.39

16.94

17.79

18.04

18.76

18.44

18.65

18.72

19.13

18.19

Bihar

13.47

12.72

14.83

15.33

16.86

16.71

16.53

15.81

14.63

14.37

15.03

Gujarat

14.08

13.71

13.38

15.19

15.15

15.07

15.11

14.34

14.03

14.24

14.20

Haryana

20.00

24.52

26.10

24.88

25.65

23.82

24.00

25.26

24.72

24.47

25.89

Himachal Pradesh

27.03

28.17

na

na

na

na

na

na

na

na

na

Jammu & Kashmir

22.43

25.90

na

na

na

32.68

na

30.72

29.45

28.27

28.22

Karnataka

14.28

14.83

16.01

16.95

16.25

15.73

15.76

16.53

16.15

15.99

15.13

Kerala

29.82

na

na

na

na

na

na

na

na

na

na

Madhya Pradesh

14.32

14.92

na

11.35

11.73

14.65

14.94

14.97

na

12.73

13.32

Maharashtra

16.13

16.36

20.11

20.40

19.55

19.80

19.14

18.08

17.64

17.06

16.32

Manipur

16.97

17.97

21.31

na

19.69

19.26

19.32

18.52

17.97

18.18

19.35

Meghalaya

16.60

15.88

15.78

16.34

19.61

22.82

23.42

na

20.02

na

18.61

Orissa

13.62

12.68

13.97

14.00

15.58

16.27

16.76

17.18

15.90

15.19

16.31

Punjab

22.13

23.41

23.87

24.06

25.20

25.43

24.94

23.08

22.64

20.98

24.04

Rajasthan

na

na

na

na

na

na

na

na

na

na

na

Tamil Nadu

18.40

19.30

22.00

21.88

20.45

19.16

19.53

20.47

20.23

20.55

21.69

Tripura

14.81

16.09

16.42

18.31

18.43

22.09

20.74

22.87

23.76

22.27

23.70

Uttar Pradesh

15.04

15.92

16.78

17.66

16.91

16.59

16.55

16.27

15.36

15.99

16.21

West Bengal

13.72

15.23

16.95

17.15

17.54

16.81

16.77

17.97

19.07

18.89

18.95

India

17.44

17.79

17.09

17.63

17.90

17.95

18.16

18.30

17.96

17.79

17.84

(D) Transplanting (Female)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

10.20

10.45

10.64

10.92

10.20

9.75

10.15

10.44

11.05

12.16

15.26

Assam

13.84

15.38

14.74

15.20

15.54

14.59

15.21

15.72

15.83

15.77

15.40

Bihar

12.20

11.24

13.71

14.34

15.54

15.42

15.60

14.96

13.75

13.40

13.63

Gujarat

13.23

13.21

12.59

14.82

14.53

14.69

14.71

14.05

13.64

13.54

13.77

Haryana

13.04

19.31

na

na

25.68

na

21.17

23.17

23.81

23.00

25.07

Himachal Pradesh

24.91

27.60

na

na

na

na

na

na

na

na

na

Jammu & Kashmir

na

na

na

na

na

na

na

na

na

na

na

Karnataka

11.24

11.38

12.50

13.12

12.40

11.69

12.00

12.35

11.90

12.09

12.31

Kerala

25.21

28.91

29.24

30.36

30.20

29.10

28.96

29.49

29.33

29.36

29.36

Madhya Pradesh

13.53

13.46

na

10.25

na

na

na

13.06

na

11.09

12.00

Maharashtra

13.74

12.10

13.53

13.84

13.44

13.53

12.49

12.30

12.44

11.59

10.84

Manipur

15.51

15.95

na

na

16.34

17.63

na

17.15

na

16.25

17.41

Meghalaya

13.01

11.83

11.11

10.88

13.16

15.03

15.42

14.07

14.46

14.15

12.29

Orissa

11.90

10.76

11.76

11.32

12.69

13.69

14.10

14.87

12.73

10.81

12.42

Punjab

16.87

18.14

na

na

na

na

na

na

na

na

na

Rajasthan

na

na

na

na

na

na

na

na

na

na

na

Tamil Nadu

12.19

12.84

13.16

12.36

11.50

10.94

11.61

12.01

12.53

13.12

14.02

Tripura

11.47

13.54

14.48

na

na

na

na

na

na

na

na

Uttar Pradesh

12.82

13.95

14.58

15.06

13.75

14.77

14.79

13.36

12.95

14.38

14.83

West Bengal

12.40

13.66

15.29

15.44

16.05

15.68

15.43

16.64

17.06

16.76

16.49

India

14.36

15.45

14.90

14.95

15.04

14.65

14.89

15.04

14.64

14.81

15.25

(E) Weeding (Female)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

8.53

9.37

9.98

9.48

9.24

9.44

9.75

9.94

10.84

12.20

15.06

Assam

15.27

17.00

na

na

na

16.23

16.63

16.18

16.58

16.13

16.19

Bihar

10.86

10.99

12.32

13.19

14.37

14.29

13.09

13.15

12.05

12.08

13.07

Gujarat

14.72

14.62

14.93

16.16

15.41

15.14

15.67

15.33

14.51

15.11

15.69

Haryana

19.61

20.80

21.06

23.62

22.96

22.09

23.14

na

na

na

24.51

Himachal Pradesh

25.71

26.72

na

na

na

na

na

na

na

na

na

Jammu & Kashmir

na

na

na

na

na

na

na

na

na

na

na

Karnataka

10.08

10.59

11.49

11.27

11.25

10.62

10.75

10.92

10.63

10.88

10.85

Kerala

25.70

30.81

31.53

32.55

30.88

29.21

29.06

29.47

29.33

29.52

30.58

Madhya Pradesh

11.05

11.21

11.19

11.77

11.56

11.50

11.19

10.72

10.42

10.34

10.50

Maharashtra

10.64

9.70

10.86

10.80

10.55

10.15

9.51

9.81

9.96

10.21

10.02

Manipur

13.82

12.82

na

na

15.00

17.59

17.74

16.77

16.32

16.33

17.44

Meghalaya

12.73

11.78

11.25

11.56

13.12

14.65

14.89

14.70

14.15

13.08

12.57

Orissa

11.22

10.59

11.86

11.60

15.01

12.52

14.58

12.96

14.20

na

12.19

Punjab

18.72

20.15

na

na

na

na

na

na

na

na

na

Rajasthan

17.13

17.70

20.33

20.05

13.69

15.03

15.22

15.62

15.31

15.18

18.46

Tamil Nadu

10.98

12.24

12.20

11.96

11.18

11.37

11.62

12.36

12.78

13.00

14.03

Tripura

11.61

14.26

na

na

na

na

na

na

na

na

na

Uttar Pradesh

11.91

13.26

15.08

14.26

14.76

15.33

14.04

13.82

13.58

14.39

15.11

West Bengal

12.69

13.78

14.99

15.17

15.69

15.39

15.31

15.89

16.20

16.34

16.27

All India

14.40

15.19

13.96

13.94

13.90

13.81

13.66

13.68

13.61

13.97

14.72

(F) Harvesting (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

14.26

14.07

14.24

14.45

14.15

14.24

14.59

15.64

16.12

17.76

20.67

Assam

16.05

15.79

16.51

17.30

17.10

19.24

18.67

18.12

19.24

18.99

18.39

Bihar

12.75

13.18

15.30

15.87

17.76

17.63

17.31

16.74

15.48

15.07

15.69

Gujarat

15.95

15.42

15.96

16.41

16.52

16.22

16.36

16.01

15.63

16.06

15.48

Haryana

22.79

25.67

26.73

26.95

27.73

26.96

27.21

27.48

26.25

26.32

27.84

Himachal Pradesh

27.29

27.40

na

na

na

32.81

na

32.94

31.14

36.20

36.58

Jammu & Kashmir

26.46

26.03

29.93

32.53

31.91

33.16

31.90

31.70

29.16

29.29

30.26

Karnataka

14.00

14.53

16.16

16.71

15.88

15.31

15.76

15.82

15.42

15.85

16.97

Kerala

36.89

36.56

na

na

na

na

na

na

na

33.58

33.84

Madhya Pradesh

12.79

13.28

13.81

14.51

14.06

14.15

14.32

13.63

12.56

13.17

13.48

Maharashtra

14.36

15.38

17.32

17.69

17.88

17.17

16.64

16.17

16.73

17.35

17.62

Manipur

17.22

17.14

na

na

17.44

19.70

19.54

18.46

17.97

18.62

19.61

Meghalaya

16.98

15.79

na

na

18.76

24.22

21.51

21.17

21.45

20.24

na

Orissa

14.05

12.26

13.96

14.09

16.13

15.46

16.01

16.48

14.16

14.15

16.77

Punjab

23.20

23.08

23.88

25.05

25.81

25.42

25.45

24.05

24.40

23.17

25.06

Rajasthan

22.18

21.04

25.04

25.05

19.43

20.49

19.13

19.79

17.48

19.06

22.83

Tamil Nadu

18.47

19.96

22.11

21.60

19.11

19.17

19.85

20.33

20.43

21.29

22.99

Tripura

14.90

16.01

16.68

18.51

18.46

22.82

21.02

23.27

23.47

22.11

24.14

Uttar Pradesh

16.22

17.39

17.69

17.55

17.88

18.17

17.96

17.06

15.75

16.84

17.44

West Bengal

13.73

15.36

16.89

16.84

17.07

16.77

16.74

17.83

18.33

18.30

18.45

All India

18.61

18.97

17.78

18.10

17.96

18.11

18.11

18.17

17.64

18.04

18.84

(G) Harvesting (Female)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

11.29

11.07

11.58

11.42

10.45

10.60

10.90

12.22

13.00

13.94

16.59

Assam

15.42

15.93

16.00

16.86

15.52

15.93

16.62

16.80

17.77

16.42

15.73

Bihar

11.63

11.90

13.69

14.56

16.25

16.22

16.00

15.62

14.23

13.96

14.64

Gujarat

15.45

15.08

15.37

15.87

16.25

15.96

16.15

15.52

14.93

15.54

15.08

Haryana

21.16

23.53

26.59

25.83

26.80

26.63

27.14

26.85

25.50

25.78

27.02

Himachal Pradesh

25.19

26.89

na

na

na

na

na

na

na

na

na

Jammu & Kashmir

na

na

na

na

na

na

na

na

na

na

na

Karnataka

10.46

10.74

11.57

11.74

11.26

10.73

10.72

11.07

11.00

11.71

12.69

Kerala

24.58

27.55

27.22

29.39

29.06

28.74

28.83

28.90

28.68

29.20

30.05

Madhya Pradesh

11.48

11.71

12.03

12.52

12.42

12.41

12.34

11.79

10.94

11.59

11.76

Maharashtra

10.27

10.67

11.60

11.88

11.81

10.87

10.53

10.27

11.26

10.82

10.96

Manipur

14.92

15.13

na

na

15.26

18.04

17.97

17.03

16.62

16.56

17.56

Meghalaya

13.87

13.10

na

na

14.19

16.02

14.99

14.96

14.43

13.89

13.08

Orissa

12.00

10.52

11.69

11.44

13.29

12.82

13.37

14.22

10.77

10.14

14.02

Punjab

18.51

17.82

na

na

na

na

na

na

na

na

na

Rajasthan

19.29

18.13

21.55

19.81

14.26

16.24

16.41

17.10

15.39

16.96

21.02

Tamil Nadu

13.43

14.05

15.20

14.33

13.33

14.15

14.25

14.43

14.41

15.20

15.43

Tripura

11.61

13.57

na

na

na

na

na

na

na

na

na

Uttar Pradesh

14.34

15.13

15.52

15.09

15.01

16.29

15.58

14.32

13.47

15.24

15.57

West Bengal

12.57

14.15

15.46

15.50

15.98

15.62

15.21

16.33

16.78

16.67

16.65

All India

15.39

15.92

14.75

14.75

14.82

14.97

14.91

14.82

14.35

14.94

15.49

(H) Carpenter (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

20.83

22.44

23.78

24.25

23.45

23.25

22.46

22.80

22.20

22.71

25.22

Assam

26.34

25.51

25.72

28.01

30.18

29.38

30.49

31.22

31.30

31.90

32.03

Bihar

22.56

22.88

26.69

28.35

31.46

31.09

31.07

29.32

27.27

27.39

27.71

Gujarat

36.57

35.52

37.05

37.94

37.85

37.21

37.74

36.15

34.26

33.78

33.51

Haryana

39.45

44.69

44.87

41.28

42.66

41.46

40.01

39.71

37.46

38.59

41.36

Himachal Pradesh

47.83

48.79

54.15

55.00

55.61

54.24

55.05

55.57

54.83

56.78

55.38

Jammu & Kashmir

49.92

47.72

49.93

50.95

49.96

50.07

51.90

50.50

47.36

46.00

47.14

Karnataka

22.36

25.71

30.12

31.25

30.58

28.86

27.62

28.86

27.71

27.74

27.51

Kerala

52.53

54.23

54.29

56.58

58.08

56.94

56.02

57.29

59.55

59.57

60.19

Madhya Pradesh

23.08

24.33

24.13

24.66

24.85

25.23

25.16

24.28

23.03

23.13

22.02

Maharashtra

25.55

27.01

28.37

29.78

30.06

29.29

28.91

28.38

27.43

27.72

27.04

Manipur

23.62

23.05

23.94

25.52

26.84

27.31

27.27

25.59

24.98

29.51

30.62

Meghalaya

28.25

27.16

27.38

26.45

30.52

29.68

30.93

34.01

32.95

31.81

30.59

Orissa

25.96

24.62

28.90

31.09

33.54

32.63

33.80

34.24

32.05

31.12

30.70

Punjab

46.84

46.50

48.63

47.20

46.51

45.55

44.49

43.55

41.95

41.02

40.71

Rajasthan

42.28

41.73

43.16

47.72

47.00

46.81

42.75

38.03

36.80

37.07

39.25

Tamil Nadu

31.61

33.76

36.92

37.00

34.49

34.38

36.63

36.07

35.88

36.17

37.72

Tripura

23.59

22.64

24.19

27.01

29.36

30.21

30.65

32.46

32.15

30.03

31.32

Uttar Pradesh

29.33

31.30

34.15

34.13

34.66

34.57

34.58

33.49

31.55

31.23

31.47

West Bengal

22.66

24.92

27.39

28.25

28.56

27.09

26.39

27.39

27.96

27.69

26.81

All India

32.07

32.99

31.91

33.01

33.10

32.57

32.55

32.31

31.27

31.16

31.30

(I) Blacksmith (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

17.57

19.63

21.08

21.47

20.92

20.66

19.84

19.43

18.46

19.04

19.54

Assam

16.86

16.86

17.20

19.27

20.60

22.09

22.28

21.95

21.24

20.03

19.18

Bihar

20.07

20.17

23.04

24.66

26.90

26.09

25.83

24.56

22.67

22.40

23.75

Gujarat

34.48

39.10

39.08

na

na

na

na

na

na

na

na

Haryana

34.92

39.60

40.13

35.66

36.11

34.84

32.59

32.83

31.15

31.27

29.63

Himachal Pradesh

41.22

43.48

48.26

51.23

50.32

49.26

51.00

47.29

50.21

54.85

52.96

Jammu & Kashmir

36.80

32.82

33.66

35.85

36.06

36.51

35.95

36.83

34.73

35.42

33.02

Karnataka

18.82

20.46

24.24

25.32

24.07

22.15

21.98

22.58

21.13

20.74

21.05

Kerala

46.78

47.84

46.58

48.05

49.89

49.33

50.63

53.83

55.75

56.13

59.30

Madhya Pradesh

19.32

20.49

20.23

20.46

20.36

21.05

20.60

20.23

19.53

19.03

18.47

Maharashtra

21.48

22.10

24.12

24.59

24.19

23.97

24.22

24.27

22.47

22.70

22.08

Manipur

17.42

17.06

18.77

21.02

22.54

22.81

22.66

21.70

21.34

21.67

21.49

Meghalaya

21.05

18.73

19.58

20.56

22.28

23.66

23.14

23.24

22.18

22.87

22.48

Orissa

24.63

20.83

22.11

27.59

29.98

27.08

26.38

25.84

22.56

22.27

21.34

Punjab

45.67

45.97

47.68

45.50

45.84

44.38

43.55

44.70

41.91

40.36

38.59

Rajasthan

26.64

23.13

30.13

na

na

na

na

na

na

24.60

23.52

Tamil Nadu

28.36

30.59

32.78

32.67

30.19

29.92

31.99

32.26

31.30

29.30

30.00

Tripura

10.41

11.20

11.70

14.09

14.59

16.47

18.84

21.00

21.54

20.10

22.53

Uttar Pradesh

26.50

27.04

29.34

29.30

29.50

30.73

30.53

29.85

28.20

28.00

27.16

West Bengal

17.37

19.93

21.82

20.78

21.51

20.45

18.65

17.20

17.55

17.95

17.92

All India

26.32

26.98

25.24

25.68

25.63

25.47

25.21

25.06

23.95

23.58

23.20

(J) Mason (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

24.76

26.32

28.03

28.35

27.97

28.53

27.93

28.30

27.70

30.30

33.46

Assam

26.61

26.41

26.61

29.81

30.66

31.63

32.83

33.46

33.16

33.09

32.72

Bihar

26.33

26.81

30.28

32.89

34.68

34.95

34.74

33.37

30.78

31.70

31.74

Gujarat

40.11

39.75

41.23

44.10

42.46

41.65

40.25

38.16

36.95

37.19

38.94

Haryana

43.53

47.71

49.23

49.22

48.92

47.94

48.46

48.17

46.97

47.33

48.91

Himachal Pradesh

48.36

48.84

53.79

54.12

54.62

54.85

55.33

54.15

52.99

55.02

52.49

Jammu & Kashmir

51.22

49.61

50.82

52.60

51.04

53.22

52.88

51.07

47.24

45.26

46.49

Karnataka

26.19

27.18

31.41

33.14

31.68

29.89

30.94

32.45

30.68

29.95

30.73

Kerala

51.24

52.75

53.22

55.90

55.39

53.88

54.51

57.02

57.84

59.15

59.87

Madhya Pradesh

28.94

29.48

29.06

29.69

29.60

30.35

29.84

29.03

27.48

27.82

26.92

Maharashtra

27.42

29.21

30.36

32.49

33.25

32.91

33.17

32.88

31.44

31.68

32.30

Manipur

24.20

23.71

24.43

26.15

26.39

27.03

26.97

25.76

25.31

na

36.20

Meghalaya

28.95

26.70

24.83

24.63

28.21

27.03

28.51

31.29

28.82

27.44

26.76

Orissa

28.35

27.61

31.36

33.66

35.85

35.64

35.94

34.96

32.98

31.68

32.05

Punjab

46.32

47.38

48.88

47.42

46.92

45.88

44.96

43.56

42.01

41.34

40.40

Rajasthan

45.11

44.53

46.77

46.98

46.18

48.05

43.97

40.29

39.49

40.88

42.68

Tamil Nadu

34.18

36.02

39.42

40.10

37.99

37.55

38.48

38.64

39.01

39.98

42.76

Tripura

23.59

22.62

24.13

27.01

28.59

30.59

30.65

32.46

32.22

30.08

31.08

Uttar Pradesh

32.69

35.06

37.94

38.13

38.47

38.23

38.21

36.47

34.77

34.22

33.94

West Bengal

23.09

25.80

28.74

29.33

30.02

29.11

28.13

28.67

29.25

28.60

27.87

All India

34.06

34.89

34.76

35.88

35.80

35.64

35.50

35.12

33.99

34.22

34.70

(K) Unskilled labour (Male)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

13.44

14.40

14.94

14.78

14.22

14.19

13.99

14.33

14.44

16.18

19.13

Assam

13.78

14.65

15.48

16.48

16.61

17.79

18.60

18.05

17.88

17.83

19.06

Bihar

12.86

12.77

14.41

15.68

16.21

16.30

16.40

15.95

15.01

15.42

15.96

Gujarat

14.98

14.11

14.51

15.54

15.71

15.48

14.62

13.78

13.61

14.60

15.21

Haryana

22.78

23.71

26.53

26.61

26.28

25.60

24.81

24.89

24.25

25.49

27.14

Himachal Pradesh

26.01

26.93

30.56

31.63

31.56

31.58

32.23

31.49

30.01

31.73

32.35

Jammu & Kashmir

28.41

26.47

28.13

29.21

29.27

31.13

31.36

29.85

28.16

28.28

29.43

Karnataka

12.22

12.08

13.63

13.95

13.79

13.27

13.36

14.15

13.64

13.89

14.54

Kerala

38.42

39.96

39.84

42.06

42.57

42.16

41.57

41.93

43.32

43.63

46.18

Madhya Pradesh

11.36

11.96

11.62

11.51

11.66

11.72

11.42

11.13

10.40

10.63

10.99

Maharashtra

14.28

14.20

14.61

15.21

14.95

14.78

14.45

14.10

14.01

14.10

14.67

Manipur

15.33

14.44

15.32

15.66

15.32

16.90

16.97

16.09

15.62

16.15

17.40

Meghalaya

15.51

14.33

14.10

14.47

16.72

16.64

17.48

19.27

19.24

18.54

17.38

Orissa

12.89

11.98

13.38

13.64

15.12

14.81

14.83

15.43

15.16

14.65

15.92

Punjab

23.95

24.03

24.88

24.83

24.70

24.29

23.51

22.40

22.93

22.85

24.87

Rajasthan

20.28

20.61

22.10

22.54

21.68

22.27

20.39

19.13

18.59

19.95

22.58

Tamil Nadu

17.99

20.25

21.91

22.10

20.48

20.83

21.30

21.77

22.51

22.58

24.57

Tripura

16.03

16.34

17.12

18.87

19.28

21.63

21.70

23.90

24.19

22.56

25.30

Uttar Pradesh

16.00

16.52

17.68

17.56

17.49

17.61

17.51

16.57

16.03

16.87

18.34

West Bengal

13.05

14.45

15.89

16.13

16.41

15.98

15.62

16.38

16.24

16.12

16.52

All India

18.01

18.34

17.37

17.77

17.77

17.77

17.62

17.50

17.17

17.54

18.71

(L) Unskilled labour (Female)

 

1998–99

1999–2000

2000–01

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

Andhra Pradesh

9.81

10.17

10.56

10.85

10.56

10.46

9.93

10.37

10.49

11.70

13.72

Assam

12.27

12.70

13.48

13.86

13.81

13.21

13.28

12.16

12.50

13.65

13.99

Bihar

11.20

11.06

12.65

13.35

14.78

14.76

14.65

14.53

13.27

13.60

14.57

Gujarat

13.85

12.81

13.82

14.69

15.34

14.99

13.99

13.19

13.08

14.07

14.86

Haryana

19.90

21.15

24.50

24.65

24.50

24.43

23.83

23.99

23.01

23.68

26.65

Himachal Pradesh

21.43

22.32

na

na

na

na

na

na

na

na

34.14

Jammu & Kashmir

na

na

na

na

na

na

na

na

na

na

na

Karnataka

9.29

8.95

10.14

10.50

10.25

9.95

9.84

10.07

9.89

10.24

10.84

Kerala

25.47

27.87

27.72

30.54

29.90

30.27

31.36

32.63

33.91

33.44

34.06

Madhya Pradesh

10.10

10.65

10.12

9.94

9.86

9.92

9.68

9.52

8.95

9.21

9.47

Maharashtra

9.95

9.70

9.63

9.79

9.72

9.48

9.22

8.97

8.84

9.21

9.48

Manipur

13.64

13.50

13.70

14.62

14.74

15.82

15.88

14.69

14.16

14.13

15.31

Meghalaya

13.46

12.01

na

na

na

na

na

12.62

12.03

12.21

11.78

Orissa

11.37

10.75

12.03

12.19

13.49

12.88

12.58

12.95

12.57

12.10

13.48

Punjab

15.59

16.68

na

na

na

na

na

19.75

na

na

na

Rajasthan

17.65

17.43

19.25

19.48

18.78

19.54

18.26

17.13

16.96

17.84

20.60

Tamil Nadu

11.99

13.46

14.67

15.00

13.86

14.17

14.73

15.06

16.00

16.84

17.85

Tripura

14.56

15.68

na

na

na

na

na

na

na

na

na

Uttar Pradesh

13.11

13.50

14.20

13.57

14.41

14.99

14.76

13.69

13.30

14.05

14.92

West Bengal

11.49

12.49

14.34

14.72

14.58

14.35

14.20

14.74

14.37

14.28

14.87

All India

14.19

14.46

12.99

13.26

13.36

13.28

13.06

13.13

12.86

13.29

14.21

Notes: The CPIAL and CPIRL (1986–87 = 100) are used as deflators.

na: not available.

Source: GOI, Wage Rates in Rural India, various issues.

Levels of Real Wages

Regional variations in real wage rates are significant. When we look at men’s real wage rates in 2008–09, we find that it is the highest in Kerala for most occupations, followed by the north-western States of Jammu & Kashmir, Himachal Pradesh, Punjab, and Haryana. These five States almost invariably have been at the top throughout the period. Wage rates are very low in Madhya Pradesh, Bihar, Orissa, Uttar Pradesh, and Karnataka. This pattern of regional variation is very similar to that noted by Chavan and Bedamatta (2006).

It is seen that the wage rate for ploughing in Kerala is so high (Rs 64.07) that it surpasses the wage rates for carpenter (Rs 60.19) and mason (Rs 59.87). The difference in the wage rate for ploughing between Kerala and the other States is more than Rs 15. In the wage rates for transplanting and harvesting, in which women also participate, on the other hand, the difference between Kerala and the other States is not much: less than Rs 5. A similar tendency can be observed in Tamil Nadu too. It is also noticed that West Bengal improved its ranking in 2008–09, compared to 1998–99.

Though women’s wage rates are not available for Himachal Pradesh, Jammu & Kashmir, and Punjab, the ranking of States according to female wage rates is similar to that of males. At the bottom lie Maharashtra, Madhya Pradesh, Karnataka, Orissa, and Meghalaya. The female wage rate in Andhra Pradesh, which was at the bottom in the late 1990s, rose substantially by 2008–09. West Bengal and Tamil Nadu also improved their ranking during this period.

Growth of Real Wages

Taking into account the implementation of NREGA 2005, the period under study is divided into two sub-periods: 1998–99 to 2004–05 and 2005–06 to 2008–09. Table 2 shows the average annual rate of growth of wages for major agricultural and rural labour occupations during the two sub-periods.

Table 2 Average annual rate of growth of wages for major occupations in rural India in per cent

Ploughing
(Male)

Sowing
(Male)

Transplanting
(Male)

Transplanting
(Female)

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Andhra Pradesh

0.24

7.74**

2.12**

7.61**

2.18

10.37*

–0.69

12.35**

Assam

–0.51

0.78

3.91**

1.05

3.27**

–0.54

0.82

–0.64

Bihar

4.63**

1.23*

3.85**

–1.43

4.60**

–1.70

5.34**

–3.06

Gujarat

3.03**

1.05

2.65**

0.45

1.87*

–0.15

2.41**

–0.69

Haryana

1.06

2.22**

1.17

1.34

1.68

0.65

2.02

Himachal Pradesh

3.79**

8.66**

3.87*

Jammu & Kashmir

3.54**

–4.66**

6.54**

–2.35

–2.95*

Karnataka

2.10

1.77

0.38

3.58

1.53

–2.75*

0.87

0.05

Kerala

2.74

2.64

2.48*

0.30

1.65

–0.13

Madhya Pradesh

1.40**

1.89

1.50**

–0.68

Maharashtra

1.06

3.30**

1.68

2.93**

3.10*

–3.41**

–0.25

–4.49*

Manipur

3.62**

7.73

1.33

1.49

1.44

Meghalaya

5.28**

–5.52**

4.92**

–3.90**

7.05**

4.14

–4.27

Orissa

5.44**

–2.81

4.73**

–3.08

4.39**

–2.02

3.81**

–7.03

Punjab

2.06**

0.47

Rajasthan

1.03

4.62

1.18

–2.50

Tamil Nadu

0.26

1.32

–0.41

2.27

0.33

1.89

–2.15*

5.10**

Tripura

6.52**

0.47

5.95**

0.45

6.28**

0.43

Uttar Pradesh

1.83*

1.85

1.73*

2.67

1.34

0.28

1.73

4.16

West Bengal

3.51**

–0.92

2.48*

0.41

2.97*

1.50

3.50**

–0.45

All India

1.36

0.22

–0.87

0.54

 

Harvesting
(Male)

Harvesting (Female)
Weeding (Female)

Carpenter
(Male)

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Andhra Pradesh

0.31

9.33**

–1.05

9.88**

1.22

13.65**

1.01

3.27

Assam

3.16**

0.32

0.70

–2.77

3.15**

0.96*

Bihar

5.88**

–2.22

6.24**

–2.14

4.43**

–0.17

6.21**

–1.65

Gujarat

0.76*

–0.74

1.07**

–0.45

1.03

1.10

0.75*

–2.42*

Haryana

2.38**

0.41

3.58**

0.30

2.51**

–0.57

1.52

Himachal Pradesh

4.65

2.36**

0.25

Jammu & Kashmir

3.96**

–1.35

0.76

–2.36

Karnataka

1.58

2.37

0.17

4.73*

0.64

0.06

3.14

–1.42

Kerala

2.24**

1.35

0.86

1.18

1.28**

1.48

Madhya Pradesh

1.73**

0.14

1.30**

0.50

0.44

–0.71

1.29**

–2.89*

Maharashtra

2.47

2.94**

0.47

1.57

–0.98

0.91

2.11**

–1.35

Manipur

3.16**

7.05

Meghalaya

3.78*

–5.47**

1.99*

–3.54**

Orissa

3.57**

0.52

3.03*

–1.03

4.84**

5.37**

–3.56*

Punjab

1.96**

0.72

–0.86

–2.24**

Rajasthan

–2.68

5.15

–3.99

7.16

–3.85

4.93

1.25

1.02

Tamil Nadu

–0.04

4.10*

0.22

2.54*

–0.23

3.96**

1.46

1.42

Tripura

6.58**

0.51

5.56**

–1.76

Uttar Pradesh

1.44**

1.34

1.30*

3.74

2.72*

3.27

2.53**

–1.97

West Bengal

2.79*

1.00

2.86*

0.52

2.96**

0.80

2.38

–0.73

All India

1.32

1.74

2.47

–0.98

 

Blacksmith
(Male)

Mason
(Male)

Unskilled Labour
(Male)

Unskilled Labour
(Female)

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

1998–99
to
2004–05

2005–06
to
2008–09

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Growth
rate

Andhra Pradesh

1.64

0.48

1.86**

5.93

0.15

9.81*

0.34

9.48*

Assam

5.56**

–4.64**

4.04**

–0.69**

4.85**

1.60

1.21

5.08**

Bihar

5.09**

–1.13

5.35**

–1.21

4.76**

0.30

5.49**

0.32

Gujarat

0.48

0.67

0.69

3.67*

1.60

4.31*

Haryana

–2.03

–3.03*

1.16

0.53

1.43

3.08

2.96*

3.44

Himachal Pradesh

3.32**

4.28

2.33**

–0.56

3.55**

1.37

Jammu & Kashmir

0.76

–3.08

0.86*

–3.25

2.36**

–0.38

Karnataka

2.21

–2.29

2.49

–1.88

1.67

0.98

1.41

2.55

Kerala

1.31**

2.97**

0.96*

1.69**

1.46**

2.96**

3.09**

1.14

Madhya Pradesh

0.90*

–2.99**

0.60**

–2.14

–0.08

–0.17

–1.06*

0.15

Maharashtra

1.88**

–2.74

3.21**

–0.46

0.49

1.24

–0.95**

2.04

Manipur

5.54**

–0.15

2.38**

2.21**

2.69

3.02**

1.22

Meghalaya

3.15**

–0.69

0.38

–5.18**

2.96

–3.47*

–1.92

Orissa

3.70

–5.87*

4.84**

–3.01

3.45**

0.60

2.78**

0.84

Punjab

–0.90*

–4.79**

–0.69

–2.42**

–0.15

3.10

Rajasthan

0.22

2.07

0.54

5.67

1.09

6.04

Tamil Nadu

0.84

–2.84

1.43

3.28*

1.77

3.66*

2.37

5.62**

Tripura

9.90**

1.43

5.57**

–1.99

5.68**

1.00

Uttar Pradesh

2.45**

–2.90**

2.34**

–2.32*

1.39**

3.56

2.07**

3.12

West Bengal

0.89

1.46*

3.13*

–1.08

2.76*

0.18

3.32**

0.19

All India

–2.47**

–0.29

0.18

2.71

Note: (1) Since the all–India averages in 1998–99 and 1999–2000 are simple arithmetic means of the figures for 20 States and hence not compatible with the later years, the growth rate is not computed here.

(2) * and ** stand for significance level at 10 and 5 per cent, respectively.

Source: GOI, Wage Rates in Rural India, various issues.

The annual growth rate of real wages differs significantly across regions, among occupations, and also between the sub-periods.

During the first sub-period (1998–99 to 2004–05), agricultural wage rates rose as a whole. There were some cases of negative growth, but they are not statistically significant. Not only high wage rate regions, like Kerala, Himachal Pradesh, and Jammu & Kashmir, but also low wage rate regions, such as Bihar, Gujarat, Orissa, Tripura, and West Bengal, recorded positive growth in men’s wage rates for major agricultural operations. Wage rates did not rise or remained stagnant in some States, including Maharashtra, Madhya Pradesh, Tamil Nadu, and Karnataka.

Female wage rates rose markedly in Bihar, Orissa, West Bengal, and Meghalaya, while they declined or remained stagnant in Karnataka, Maharashtra, Andhra Pradesh, Tamil Nadu, and Rajasthan. There is no correlation between the growth rate and initial wage rate for agricultural operations.

Wage rates for non-agricultural occupations grew not only in the States that recorded a high growth rate for agricultural wages, but also in the States where agricultural wages remained stagnant or declined, namely Karnataka, Maharashtra, Uttar Pradesh, and West Bengal. On the other hand, wage rates for non-farm occupations declined or remained stagnant in Punjab, Haryana, Jammu & Kashmir, Gujarat, Rajasthan, and Madhya Pradesh. Thus, an inverse relation can be observed between the growth rate and initial level of wages for non-agricultural occupations, which led to a narrowing of the regional wage gap.

During the second sub-period (2005–06 to 2008–09), most of the estimated growth rates are statistically insignificant due to the smaller number of samples and a large fluctuation inbetween. It is therefore quite difficult to find any definite trends, except in a few cases. One exception is Andhra Pradesh, where a rapid growth of agricultural wages was recorded. The wage rates for all farm operations and non-farm occupations in Andhra Pradesh rose very rapidly, at more than 10 per cent a year. Tamil Nadu also recorded an improvement in agricultural wage rates, though not as fast as in Andhra Pradesh. In Maharashtra, agricultural wage rates grew for all operations except transplanting. On the other hand, Jammu & Kashmir and Meghalaya recorded negative growth in ploughing and sowing.

According to the growth rates based on the wage rates of the initial and terminal years, 13 States, including Andhra Pradesh, Haryana, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Manipur, Punjab, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh, and West Bengal, recorded positive growth for a majority of farm operations. The remaining 7 States recorded negative growth rates for a majority of farm operations.

In contrast to the first sub-period, the second sub-period saw negative growth in wage rates for non-agricultural occupations in many States. The growth rates of wages for carpenters, blacksmiths, and masons were negative in most of the States, and about a half of these are statistically significant. On the other hand, the growth rates for both male and female unskilled labour were positive in most of the States, though only a few are statistically significant. The growth rates of unskilled labour wages, based on the wage rates of the initial and terminal years, were positive for all States other than Madhya Pradesh and Meghalaya. It is noteworthy that the wage rates for female unskilled labour grew more rapidly than that for males in Andhra Pradesh, Assam, Gujarat, Haryana, Karnataka, Rajasthan, and Tamil Nadu.

How has the regional variation changed? Figure 1 shows the coefficient of variation (CV) of wage rates for major occupations. Note that the CV depends on availability of Kerala data. The CV of wage rate for ploughing corresponds closely to the fluctuation of the wage rate in Kerala, and the lower CVs for transplanting and harvesting than for ploughing and sowing are mainly due to non-availability of Kerala data. In spite of this limitation, we can safely say that regional disparities in wage rates narrowed in the first sub-period, that is, from 1998–99 to 2004–05. By contrast, the CVs ceased to decline, and the CVs of wage rates for blacksmith and female unskilled labourer rose during the second sub-period. In other words, regional disparities in non-farm wage rates widened from 2005–06 to 2008–09.

Figure 1 Change in regional variation of wage rates

Source: GOI, Wage Rates in Rural India, various issues.

Wage Differentials
Between Agricultural Labour and Rural Non-Farm Labour

One of the merits of the WRRI data is that they allow us to analyse the wage differentials between various occupations. In order to examine the pattern of wage differentials between agricultural labour and rural non-farm labour, the ratio of the wage rate for mason and unskilled labourer to the wage rate for ploughing and harvesting for males, and the ratio of the wage rate for unskilled labourer to weeding and harvesting for females, are worked out. A three-year average is taken for comparison of the beginning and end of the period under study.

Table 3 Wage differentials between agricultural labour and rural non–farm labour

 

Male 1998–99 to 2000–01

Male 2006–07 to 2008–09

Female 1998–99
to 2000–01

Female 2006–07
to 2008–09

 

Mason/
Ploughing

Unskilled/
Ploughing

Mason/
Harvest

Unskilled/
Harvest

Mason/
Ploughing

Unskilled/
Ploughing

Mason/
Harvest

Unskilled/
Harvest

Unskilled/
Weeding

Unskilled/
Harvest

Unskilled/
Weeding

Unskilled/
Harvest

Andhra Pradesh

1.55

0.84

1.86

1.00

1.47

0.80

1.68

0.91

1.10

0.90

0.94

0.83

Assam

1.31

0.72

1.65

0.91

1.73

0.96

1.75

0.97

0.79

0.81

0.82

0.80

Bihar

1.81

0.87

2.02

0.97

1.69

0.83

2.04

1.00

1.02

0.94

1.11

0.97

Gujarat

2.23

0.80

2.56

0.92

1.83

0.70

2.40

0.92

0.91

0.88

0.93

0.92

Haryana

1.91

0.99

1.87

0.97

1.87

1.00

1.78

0.96

1.07

0.92

1.00

0.94

Himachal Pradesh

1.58

0.88

1.84

1.02

1.22

0.72

1.54

0.91

0.83

0.84

na

na

Jammu & Kashmir

1.65

0.90

1.84

1.01

1.49

0.92

1.57

0.97

na

na

na

na

Karnataka

1.76

0.79

1.90

0.85

1.69

0.78

1.89

0.87

0.88

0.87

0.96

0.88

Kerala

0.89

0.67

1.43

1.07

0.91

0.69

1.75

1.32

0.92

1.02

1.13

1.15

Madhya Pradesh

2.00

0.80

2.19

0.88

1.85

0.72

2.10

0.82

0.92

0.88

0.88

0.81

Maharashtra

1.61

0.80

1.85

0.92

1.69

0.76

1.85

0.83

0.94

0.90

0.91

0.83

Manipur

1.26

0.79

1.40

0.87

1.27

0.68

1.64

0.88

1.02

0.91

0.87

0.86

Meghalaya

1.57

0.86

1.64

0.89

1.39

0.93

1.33

0.88

1.07

0.94

0.91

0.87

Orissa

2.08

0.91

2.17

0.95

1.98

0.93

2.15

1.01

1.01

1.00

0.96

1.09

Punjab

2.22

1.14

2.03

1.04

na

na

1.70

0.97

0.83

0.89

na

na

Rajasthan

1.79

0.82

2.00

0.92

1.66

0.82

2.07

1.03

0.99

0.92

1.13

1.04

Tamil Nadu

1.07

0.59

1.81

0.99

1.22

0.70

1.88

1.08

1.13

0.94

1.27

1.13

Tripura

1.48

1.04

1.48

1.04

1.34

1.03

1.34

1.03

1.17

1.20

na

na

Uttar Pradesh

2.07

0.98

2.06

0.98

1.98

0.99

2.06

1.02

1.01

0.91

0.98

0.95

West Bengal

1.16

0.65

1.69

0.94

1.05

0.60

1.56

0.89

0.92

0.91

0.89

0.87

India

1.57

0.81

1.87

0.97

1.59

0.82

1.89

0.98

0.96

0.90

0.95

0.90

Source: GOI, Wage Rates in Rural India, various issues.

When compared to agricultural wages, the wage rate for mason is seen to be much higher than the wage rate for ploughing in all States except Kerala, where the latter wage rate is higher than the former. The wage rate for mason is almost double the wage rate for ploughing in Gujarat, Orissa, and Punjab. The difference is comparatively small in West Bengal and Tamil Nadu.

The wage rate for unskilled labourer is generally lower than the wage rate for ploughing, though the former is higher in Punjab, and both are almost at the same level in Haryana, Tripura, and Uttar Pradesh. When the wage rates for unskilled labourer and harvesting are compared, both are seen to be at almost the same level in all States except in Karnataka, Madhya Pradesh, Maharashtra, and Manipur, where the wage rate for unskilled labourer is lower by more than 10 per cent.

For female workers, the wage rate for unskilled labourer is almost at the same level as the wage rate for harvesting and weeding, except in Kerala and Tamil Nadu.

It is thus observed that the wage rate for a skilled labourer such as a mason is much higher than an agricultural wage, but the wage rates for unskilled labourers, both male and female, are at almost the same level as agricultural wages.

Male–female Wage Differentials

The WRRI data allow us to compare the wage gap between men and women for the same occupation. The ratios of female to male wage rates for transplanting, harvesting, and unskilled labour are worked out. To compare with the female WPR (work participation rates) estimated by the Employment and Unemployment survey of the NSS (National Sample Survey), three-year averages are taken for 1998–99 to 2000–01 and 2003–04 to 2005–06. To see recent changes, the three-year average for the end of the period is added.

Table 4 Change in female–male wage ratios

 

1999–2000

1998–99 to 2000–01

2004–05

2003–04 to 2005–0606

2006–07 to 2008–09

 

Female WPR

Harvesting

Trans–planting

Unskilled Labour

Female WPR

Harvesting

Trans–planting

Unskilled Labour

Harvesting

Trans–planting

Unskilled Labour

Andhra Pradesh

478

0.80

0.77

0.71

483

0.76

0.67

0.72

0.72

0.80

0.72

Assam

151

0.98

0.91

0.88

209

0.88

0.82

0.71

0.84

0.88

0.73

Bihar

173

0.90

0.91

0.87

199

0.93

0.94

0.90

0.93

0.93

0.89

Gujarat

413

0.97

0.95

0.93

427

0.98

0.98

0.96

0.96

0.97

0.97

Haryana

202

0.95

0.69

0.90

317

0.99

0.91

0.96

0.96

0.97

0.95

Himachal Pradesh

471

0.95

0.95

0.79

506

na

na

na

na

na

na

Jammu & Kashmir

327

na

na

na

267

na

na

na

na

na

na

Karnataka

380

0.73

0.78

0.75

459

0.69

0.75

0.73

0.77

0.73

0.74

Kerala

238

0.72

0.93

0.69

256

na

na

0.75

na

0.87

0.76

Madhya Pradesh

382

0.88

0.92

0.88

396

0.87

0.88

0.85

0.89

0.87

0.86

Maharashtra

434

0.69

0.75

0.68

474

0.63

0.67

0.64

0.68

0.64

0.64

Manipur

253

0.87

0.84

0.91

351

0.92

0.91

0.93

0.91

0.90

0.89

Meghalaya

418

0.82

0.74

0.87

478

0.69

0.64

0.71

0.71

0.66

0.65

Orissa

299

0.85

0.85

0.89

322

0.84

0.85

0.85

0.76

0.77

0.83

Punjab

280

0.78

0.76

0.66

322

na

na

0.84

na

na

na

Rajasthan

388

0.86

na

0.86

407

0.84

na

0.89

na

0.90

0.91

Tamil Nadu

430

0.70

0.64

0.67

461

0.72

0.58

0.69

0.64

0.70

0.73

Tripura

73

0.79

0.83

0.92

85

na

na

na

na

na

na

Uttar Pradesh

201

0.88

0.87

0.81

266

0.87

0.87

0.84

0.89

0.89

0.83

West Bengal

160

0.92

0.90

0.88

178

0.92

0.93

0.90

0.88

0.91

0.89

India

299

0.83

0.85

0.78

327

0.82

0.82

0.75

0.83

0.82

0.76

Note: WPR refers to female workers per 1,000 females.

Source: GOI, Wage Rates in Rural India, various issues.

First, transplanting and harvesting. There is a substantial regional variation in the male–female wage disparity. The ratios indicate that the male–female wage disparity is relatively large in Andhra Pradesh, Karnataka, Kerala, Maharashtra, Meghalaya, and Tamil Nadu, while it is rather small in Bihar, Gujarat, Haryana, Manipur, and West Bengal. Male–female wage disparities have persisted over the last 10 years.

The regional pattern of the male–female wage gap for unskilled labour is similar to that for transplanting and harvesting: it is larger in Andhra Pradesh, Assam, Karnataka, Kerala, Maharashtra, Meghalaya, and Tamil Nadu than elsewhere.

Excluding the exceptional cases of Gujarat and Himachal Pradesh, the coefficient of correlation between the female–male wage differential for harvesting and female WPR is 0.66 for 1999–2000 and 0.65 for 2004–05, while that for transplanting is 0.61 for 1999–2000 and 0.73 for 2004–05. The male–female disparity is higher in States where female WPR is higher.

Comparison with Average Wage Rates in MGNREGA

The fixed wage and average wage paid under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2008–09 are reported for each State on the website of the MGNREGA.3 The MGNREGA average wage is calculated by dividing the total wage bill by total employment. Wage rates under the MGNREGA are supposed to be the same for men and women, but the average wage paid is much lower than the fixed wage in many States.

Table 5 Comparison between the average wage paid under MGNREGA and the wage rate for unskilled labour in WRRI

 

MGNREGA

Wage rate for unskilled labour, WRRI

 

Average wage paid

Male

Female

Andhra Pradesh

na

86.90

61.92

Assam

77.58

83.32

61.28

Bihar

87.97

68.97

62.72

Gujarat

81.90

68.19

66.57

Haryana

138.74

128.16

124.01

Himachal Pradesh

101.08

133.01

142.29

Jammu & Kashmir

71.67

127.14

 

Karnataka

78.97

63.92

47.59

Kerala

123.99

198.70

147.12

Madhya Pradesh

77.19

48.97

42.01

Maharashtra

89.92

66.48

42.83

Manipur

81.35

67.64

59.68

Meghalaya

69.98

82.41

56.21

Orissa

88.19

65.86

55.65

Punjab

114.83

119.14

 

Rajasthan

84.35

104.03

93.81

Tamil Nadu

71.99

106.07

77.04

Tripura

86.88

102.13

 

Uttar Pradesh

99.84

82.31

67.37

West Bengal

81.57

69.93

62.95

Source: http://nrega.nic.in/netnrega/home.aspx, Ministry of Rural Development; and GOI, Wage Rates in Rural India, various issues.

The average wage paid under MGNREGA is much higher than the wage rates for male unskilled labour in ten States, and it is lower than the male wage rates but higher than the female wage rates in Assam and Meghalaya. Surprisingly, the average wage paid under MGNREGA is lower than the wage rates for female unskilled labour in Himachal Pradesh, Kerala, Rajasthan, and Tamil Nadu.

It is assumed that creation of employment opportunity in manual works at a comparatively higher wage rate under MGNREGA will cause the market wage rate, in particular the wages for female unskilled labour, to rise. If so, a positive correlation is expected between the ratio of MGNREGA average wage to market wage rate, on the one hand, and the growth rate of female unskilled labour wages, on the other. The correlation coefficient between the two indicators was –0.37 in 15 states for which data are available, while it was –0.88 in 8 states where the wage rate grew faster than 2 per cent per annum. The growth of wage rate for female unskilled labour was slower in States where the average wage paid under MGNREGA is higher than the market wage rate.

If the MGNREGA has had a positive impact on wage rates in agriculture, that impact is yet to be seen in the data published by the Labour Bureau in the WRRI series.4

Conclusions

In spite of various limitations, the WRRI provides a useful data-set with which to analyse recent trends in agricultural and non-agricultural wages. The annual real wage rates for ploughing, sowing, transplanting, weeding, and harvesting for agricultural labour, and that of carpenter, blacksmith, mason, and unskilled labour, are tabulated for 1998–99 to 2008–09 using the CPIAL and CPIRL (1986–87 = 100). During the first sub-period (1998–99 to 2004–05), agricultural and rural non-farm wage rates rose in most States. Not only high wage rate regions, but also low wage rate regions recorded positive growth in real wage rates, and regional disparities in terms of coefficients of variation decreased. The second sub-period (2005–06 to 2008–09), on the other hand, saw a decline in real wage rates in most occupations and in many States, except for a few like Andhra Pradesh. This was partly due to the fact that nominal wage rates grew fast, but the deflator, i.e. CPIAL and CPIRL, rose much faster. A comparison between the real wage rates of agricultural and non-farm labour shows that the wage rate for unskilled labour is at a level almost similar to that for agricultural labour. It is also noticed that the male–female wage gap in agricultural labour is correlated to the female worker–population ratio. Thus, in spite of growing agricultural production and implementation of MGNREGA 2005, the real wages of agricultural labourers and non-farm manual labourers have not yet shown any rise, and regional wage gaps remained stagnant or even widened for female unskilled labourers.

Keywords: agricultural wages in India, wage rates for rural labourers, MGNREGA, male–female wage gap

Notes

 1 Chavan and Bedamatta (2006) discuss five such limitations of the AWI data: the definition of wage, reporting errors by untrained agencies, lack of standardization of data collection, small sample size, and frequent changes in centres/villages.

 2 There have been debates as to whether the CPIAL reflects the actual price levels in rural India . The CPIRL, which stands for consumer price index for rural labourers, is published by the Labour Bureau.

 3 Home page of the MGNREGA, http://nrega.nic.in/netnrega/home.aspx, viewed on 22 March 2011.

 4 Chandrasekhar and Ghosh (2011) have recently argued that the MGNREGA has had a favourable impact on female wages, leading to a reduction in the gender gap. The above discussion confirms that the wage rate for female unskilled labour grew faster during the second sub-period. I believe, however, that further detailed analysis is required to see if the MGNREGA is the cause for this rise in the female wage rate.

References

Chandrasekhar, C. P., and Ghosh, Jayati (2011), “Public Works and Wages in Rural India,” http://www.macroscan.org/fet/jan11/fet110111Public_Works.htm.

Chavan, P., and Bedamatta, R. (2006), “Trend in Agricultural Wages in India,” Economic and Political Weekly, 41, 38, 23 September.

Government of India (GOI), Ministry of Labour and Employment, Labour Bureau, Wage Rates in Rural India, various issues.