Since economic liberalization, the Indian economy has undergone significant transformation, with rural labour markets experiencing notable shifts in employment patterns and wage dynamics. This study investigates the magnitude of real wage growth and the extent of wage convergence in agricultural and non-agricultural occupations across rural India from 1998–1999 to 2023–2024. Real wage growth is estimated using semilog time regressions, while convergence is assessed through direct measures (e.g., coefficient of variation) and indirect methods (σ- and β-convergence analyses). The findings indicate that real wage growth has been higher in low-wage states, suggesting a trend towards convergence. A declining variation coefficient further supports reducing wage disparities across states. Although the pace of convergence remains gradual, the results highlight a narrowing gap in rural wages. The study underscores the need for policies promoting equal pay for work of equal value and enhancing skill development initiatives to address persistent wage inequalities in rural labour markets.
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