Central Idea

The Periodic Labour Force Surveys (PLFS) have diligently monitored the gender earnings gap in India from April-June 2019 to 2023.
This latest iteration places a vital spotlight on weekly hours worked, unveiling that the inequity in total earnings may not fully encapsulate the true narrative.

Examining the Gender Earnings Disparities

Claudia Goldin’s Pioneering Work: Building upon Nobel laureate Claudia Goldin’s research, India’s gender disparities in employment and wages come into focus.
Earnings Converted to Weekly Figures: Earnings for various worker categories are transformed into weekly earnings.
Ratio of Weekly Earnings: Table 1 displays the ratio of weekly earnings between men and women at the national level, encompassing rural and urban sectors. A figure above 1 denotes men earning more than women.
Persistent Gender Gap: Men out-earn women across all forms of work, with the self-employed experiencing the most significant gender gap in 2023, where men earned 2.8 times more than women. In contrast, male regular wage workers earned 24% more, and male casual workers earned 48% more than their female counterparts. The gender earnings gap remains a persistent challenge.
Changing Trends: Notably, the gender gap has increased for self-employed workers but decreased for regular wage workers, dropping to 24% in 2023 from 34% in 2019.

Incomplete Picture: Disparities in earnings per unit of work are not entirely elucidated by the earnings gap alone. Women consistently work fewer hours than men across all forms of employment, as depicted in Table 2.
Largest Gap for the Self-Employed: In 2023, men in self-employment worked 50% more hours than women, while the gap was the smallest for regular wage workers (19%).
Rising Gender Gap in Hours Worked: The gender gap in hours worked has expanded, particularly for self-employed women, indicating an increase in part-time employment among them. Simultaneously, male self-employed workers continue full-time work.

Hourly Earnings Analysis: Calculations of hourly earnings for each worker category reveal the ratio between men and women’s hourly earnings, as presented in Table 3.
Significant Reduction in Regular Wage Workers’ Gap: In 2023, men in regular wage employment earned 24% more than women over the week but worked 19% longer hours. The hourly earnings gap narrows to approximately 4%, down from 11% in 2019.
Hourly Earnings Parity in Regular Wage Work: On average, women in regular employment earn less per week but nearly match men when hourly earnings are considered. However, these averages mask nuanced disparities across occupations and industries.
Higher Inequality in Other Employment Types: Inequality in hourly earnings is more pronounced in other work categories, albeit lower than when assessing total earnings. In 2023, male casual workers earned 23% more per hour than women, a reduction from 33% in 2019. Conversely, the self-employed category witnessed an increase in the hourly earnings gap from 84% in 2019 to 87% in 2023.

Beyond Pure Choice: Lower hourly earnings inequality for regular wage workers doesn’t imply women opt for shorter work hours by choice.
Societal barriers: Barriers, such as societal expectations that women manage domestic and childcare duties, may limit their employment options.

Addressing both remuneration disparities and disparities in total work hours is crucial.
Policymakers should target the removal of barriers that curtail women’s working hours.
This involves workplace interventions like mandating childcare facilities and extended maternity leaves and broader societal transformations that challenge traditional gender norms and share childcare and domestic responsibilities more equitably.