In this paper, the gender-related wage differentials in the rural and urban sectors of the Indian economy are analysed. The hypotheses that there is a glass-ceiling effect—a greater wage gap at the top end of the wage-distribution range—and a stickyfloor effect—a wider wage gap at the bottom are examined. Findings show evidence of the glass-ceiling effect in the rural sector and evidence of the sticky-floor effect in the urban sector. Using a counterfactual decomposition method, the raw wage gapis decomposed to identify the contributions of characteristics and coefficients. The results reveal the presence of labour-market discrimination against women. Furthermore, women at the lower end of the wage-distribution spectrum face more discriminationthan those at the higher end of the range.
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