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The Effectiveness of Jobs Reservation: Caste, Religion, and Economic Status in India

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  • Borooah, Vani
  • Dubey, Amaresh
  • Iyer, Sriya

Abstract

This article investigates the effect of jobs reservation on improving the economic opportunities of persons belonging to India’s Scheduled Castes (SC)and Scheduled Tribes (ST). Using employment data from the 55th NSS round, the authors estimate the probabilities of different social groups in India being in one of three categories of economic status: own account workers; regular salaried or wage workers; casual wage labourers. Theseprobabilities are then used to decompose the difference between a group X and forward caste Hindus in the proportions of their members in regular salaried or wage employment. This decomposition allows us to distinguish between two forms of difference between group X and forward caste Hindus: ‘attribute’ differences and ‘coefficient’ differences. The authors measure the effects of positive discriminationin raising the proportions of ST/SC persons in regular salaried employment, and the discriminatory bias against Muslims who do not benefit from such policies. They conclude that the boost provided by jobs reservation policies was around 5 percentage points. They also conclude that an alternative and more effective way of raising the proportion of men from the SC/ST groups in regular salaried or wageemployment would be to improve theiremployment-related attributes.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19421.

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Date of creation: 2007
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Publication status: Published in Development & Change 3.38(2007): pp. 423-455
Handle: RePEc:pra:mprapa:19421

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Keywords: Affirmative Action; Social Groups; India;

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References

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  1. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  2. Vani Borooah & Sriya Iyer, 2005. "Vidya, Veda, and Varna: The influence of religion and caste on education in rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1369-1404.
  3. Vani K. Borooah, 2005. "Caste, Inequality, and Poverty in India," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 399-414, 08.
  4. Borooah, Vani K, 2001. "How Do Employees of Ethnic Origin Fare on the Occupational Ladder in Britain?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(1), pages 1-26, February.
  5. Borooah, Vani K & Mangan, John, 2002. "An Analysis of Occupational Outcomes for Indigenous and Asian Employees in Australia," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 31-49, March.
  6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  7. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
  8. Schmidt, Peter & Strauss, Robert P, 1975. "The Prediction of Occupation Using Multiple Logit Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 471-86, June.
  9. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
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Cited by:
  1. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2008. "Was the Mandal Commission Right? Living Standard Differences between Backward Classes and Other Social Groups in India," CEDI Discussion Paper Series 08-12, Centre for Economic Development and Institutions(CEDI), Brunel University.
  2. Chen, Hung-Ju & Sultana, Rezina, 2013. "Job Reservation and Intergenerational Transmission of Preferences," MPRA Paper 45036, University Library of Munich, Germany.
  3. Azam, Mehtabul, 2009. "A Distributional Analysis of Social Group Inequality in Rural India," IZA Discussion Papers 3973, Institute for the Study of Labor (IZA).
  4. Takahiro Ito, 2007. "Caste Discrimination and Transaction Costs in the Labor Market: Evidence from Rural North India," Hi-Stat Discussion Paper Series d06-200, Institute of Economic Research, Hitotsubashi University.
  5. Borooah, Vani, 2010. "Social Exclusion and Jobs Reservation in India," MPRA Paper 28668, University Library of Munich, Germany.
  6. Borooah, Vani, 2010. "Inequality in health outcomes in India: the role of caste and religion," MPRA Paper 19832, University Library of Munich, Germany.
  7. Bhaumik, Sumon Kumar & Chakrabarty, Manisha, 2009. "Is education the panacea for economic deprivation of Muslims?: Evidence from wage earners in India, 1987-2005," Journal of Asian Economics, Elsevier, vol. 20(2), pages 137-149, March.
  8. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Development Economics Working Papers 22174, East Asian Bureau of Economic Research.
  9. World Bank, 2011. "Perspectives on Poverty in India : Stylized Facts from Survey Data," World Bank Publications, The World Bank, number 2299, October.
  10. Sultana, R., 2011. "Reversal of Envy," Cambridge Working Papers in Economics 1106, Faculty of Economics, University of Cambridge.

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