Wage differential between caste groups: are younger and older cohorts different?

Reza (Gholamreza) Arabsheibani (), Prashant Gupta, Tapas Mishra and Mamata Parhi

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Recent literature has provided evidence that a gender and caste-based wage discrimination can exert negative economic impact on a country's development process. Given the enormous contribution of a young population to India's workforce, we examine whether there is any caste-based discrimination considering ‘demographic’ distinction. Using employment and unemployment National Sample Survey data from India for two rounds during the last two decades (1993 and 2010), we find rising wage gap between privileged and marginalized groups within younger and older cohorts across the distribution and over time. Furthermore, we decompose the wage gap using the counterfactual decomposition into endowment effect (explained by differences in characteristics) and a discrimination effect (attributable to unequal returns to covariates). We find that the discrimination effect against marginalized castes (in both cohorts) decreases, implying an increasing endowment effect across the distribution of the wage gap. This discrimination effect is more pronounced among younger compared to older cohorts.

JEL-codes: J50 (search for similar items in EconPapers)
Date: 2018-08-01
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Citations: View citations in EconPapers (5)

Published in Economic Modelling, 1, August, 2018, 74, pp. 10-23. ISSN: 0264-9993

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Journal Article: Wage differential between caste groups: Are younger and older cohorts different? (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:90510

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