Productivity Led Wage Disparity in the Indian Industry‪.‬

Wage Productivity Linkages Wages are closely linked to labour productivity. Rise in productivity acts as the deciding factor for the expansion of capacity and the adoption of improved technology. The implementation of advanced technology necessitates recruitment of skilled workers and impart of training to the existing workers. However, experienced and skilled workers are available at relatively higher wages in competitive labour markets. The studies by Dickens and Katz (1986), Krueger and Summers (1986), Holzer, et. al. (1988), Katz and Summers (1988), Katz and Murphy (1991), Krueger (1991), Krugman (1994), Lowe (1995), Murphy, et. al. (1998), Krueger (1999), Jean and Nicolettiacts (2002) and Viren (2005) have been widely referred by the researchers while examining the wage structure in industries. This study empirically examines the impact of productivity as well as technology on the determination of wages in different sub-sectors of the Indian industry.