Caste discrimination in the Indian urban labour market: An econometric analysis |
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Authors: | Subramaniam Madheswaran |
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Institution: | 1. Institute for Social and Economic Change, Bangalore, India
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Abstract: | This paper uses Degree Holders and Technical Personnel Survey of India to examine the wage gap between Non-Scheduled Castes/Tribes(NSC)
and Scheduled Castes/Tribes(SC/ST). Separate wage equations, corrected for selection bias, are estimated for NSC and SC/ST.
The parameter estimates of the wage equations were decomposed into ‘endowment’ and ‘treatment’ components using the familiar
Oaxaca Decomposition Method. A separate account was also made to analyze the interaction between occupational attainment and
the wage differential using the extended decomposition method. The main conclusion from the econometric results are: (a) the
endowment difference is higher and discrimination causes 15 per cent lower wages for SC/ST as compared to NSC; (b) the discrimination
coefficient is negative in the public sector whereas it is positive in the private sector; (c) intraoccupational wage effects
dominate. The higher endowment difference in developing countries like India implies that the pre-market discriminatory practice
with respect to education, health and nutrition are more crucial than labour market discrimination. (JEL: J3) |
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