Faced with easier access to foreign technology and imported capital goods, firms in India's organised manufacturing … production. This has raised much concern about the ability of the manufacturing sector to create jobs for India's rapidly rising … capital augmenting technological progress on the distribution of income and wage inequality. This paper attempts to fill this …

This paper argues that the assumption of a homogeneous workforce, which is implicitly invoked in the decomposition … of these changes has been less important in reducing income inequality. The main driving force of reduced income … inequality has been the fall in returns to education, which at the same time has been one of the important factors to …