Productivity-Wage Divergence: Evidence from Indian Manufacturing Sector

D P Priyadarshi Joshi

Abstract: The study explores the long-term relationship between real wages and labour productivity growth in India?s organised manufacturing sector, using panel data from 23 industries between 1999-2000 and 2017-18. Applying two-step System GMM, it confirms the efficiency wage hypothesis. Productivity is positively influenced by capital intensity and contract labour, but negatively by the male workforce share.

Keywords: Productivity, Wage, Manufacturing

How to Cite?: D P Priyadarshi Joshi, "Productivity-Wage Divergence: Evidence from Indian Manufacturing Sector", Volume 14 Issue 7, July 2025, International Journal of Science and Research (IJSR), Pages: 1837-1839, https://www.ijsr.net/getabstract.php?paperid=SR25731160345, DOI: https://dx.doi.org/10.21275/SR25731160345