Caste discrimination in the Indian urban labour market: An econometric analysis

International Review of Economics - Tập 53 - Trang 349-372 - 2006
Subramaniam Madheswaran1
1Institute for Social and Economic Change, Bangalore, India

Tóm tắt

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)

Tài liệu tham khảo

Banerjee B. andKnight J.B., “Caste Discrimination in the Indian Urban Labour Market”,Journal of Development Economics, 1985,17, pp. 277–307. Blinder A.S., “Wage Discrimination: Reduced Form and Structural Estimates”,Journal of Human Resources, 1973,8, pp. 436–55. Brown R.S., Moon M., andZoloth B.S., “Incorporating Occupational Attainment in Studies of Male/Female Earnings Differentials”,Journal of Human Resources, 1980,15, pp. 3–28. Cotton J., “On the Decomposition of Wage Differentials”,Review of Economics and Statistics, 1988,70, pp. 236–43. Greenhalg C., “Male-female Differentials in Great Britain: Is Marriage an Equal Opportunity?”,Economic Journal, 1980,90, pp.751–75. Gunderson M., “Male-Female Wage Differentials and Policy Responses”,Journal of Economic Literature, 1989,27, pp. 46–117. Heckman J.J., “Sample Selection as a Specification Error”,Econometrica, 1979,47, pp. 153–61. — andPolacheck S., “Empirical Evidence on the Functional Form of the Earnings Schooling Relationships”,Journal of the American Statistical Association, 1974,69, pp. 350–54. Madheswaran S., “Econometric Analyses of Labour Market for Scientists in India”, Unpublished Ph.D. Thesis, University of Madras, 1996. Mincer J.,Schooling, Experience and Earnings, New York: Columbia University Press, 1974. Neumark D., “Employers Discriminatory Behaviour and the Estimation of Wage Discrimination”,Journal of Human Resources, 1988,23, pp. 279–95. Oaxaca R.L., “Male-Female Wage Differentials in Urban Labour Market”,International Economic Review, 1973,14, pp. 693–709. Reimers C.W., “A Comparative Analysis of the Wages of Hispanics, Blacks and Non- Hispanic Whites”, in G.J. Borjas and M. Tienda, eds.,Hispanic in the U.S. Economy, New York: Academic Press, 1985. White H., “A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity”,Econometrica, 1980,48, pp. 817–38.