Calorie consumption and wages: Evidence from India’s labor market

Using nationally representative data from India, this study estimates the effect of calorie intake on wages. To account for endogeneity and heterogeneity, we apply Instrumental Variable and Instrumental Variable Quantile Regression methods. Results suggest that higher calorie consumption positively affects workers’ wages. A 10% increase in per capita calorie intake per day leads to a 2.5% increase in daily wages. The wage effect varies by occupation type and across the wage distribution; the marginal effect of calorie intake on wage is higher at lower quantiles of the wage distribution and for non-elementary workers. Our findings highlight the need for nutritional supplementation, particularly for workers at low and median wage levels, to maximize the wage gains from nutritional public policies. • We examine the impact of calorie intake on wages in India. • The analysis employs Two-Stage Least Squares (2SLS) and Instrumental Variable Quantile Regression (IVQR) models. • Calorie intake has a significantly positive effect on workers’ wages. • Calorie–wage elasticity is higher for workers at the lower end of the wage distribution compared to those at the upper end. • Higher calorie intake enhances physical capacity and productivity, leading to higher wages.