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

Arabsheibani, G. Reza, Gupta, Prashant, Mishra, Tapas and Parhi, Mamata (2018) Wage differential between caste groups: are younger and older cohorts different? Economic Modelling, 74. pp. 10-23. ISSN 0264-9993

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Identification Number: 10.1016/j.econmod.2018.04.019

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.

Item Type: Article
Official URL: https://www.sciencedirect.com/science/journal/0264...
Additional Information: © 2018 Elsevier
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Sets: Departments > Management
Date Deposited: 25 Oct 2018 14:53
Last Modified: 20 Jul 2019 00:18
URI: http://eprints.lse.ac.uk/id/eprint/90510

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