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Is Education the Panacea for Economic Deprivation of Muslims? Evidence from Wage Earners in India, 1987-2004

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  • Sumon Kumar Bhaumik

    ()

  • Manisha Chakrabarty

Abstract

Few researchers have examined the nature and determinants of earnings differentials among religious groups, and none has been undertaken in the context of conflict-prone multi-religious societies like the one in India. We address this lacuna in the literature by examining the differences in the average (log) earnings of Hindu and Muslim wage earners in India, during the 1987-2004 period. Our results indicate that education differences between Hindu and Muslim wage earners, especially differences in the proportion of wage earners with tertiary education, are largely responsible for the differences in the average (log) earnings of the two religious groups across the years. By contrast, differences in the returns to education do not explain the aforementioned difference in average (log) earnings. Citing other evidence about persistence of educational achievements across generations, however, we argue that attempts to narrow this gap using quotas for Muslim households at educational institutions might be counterproductive from the point of view of conflict avoidance.

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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp858.

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Length: pages
Date of creation: 01 Jan 2007
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Handle: RePEc:wdi:papers:2007-858

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Keywords: earnings gap; education; decomposition; religion;

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Cited by:
  1. Manisha Chakrabarty & Sumon Kumar Bhaumik, 2012. "Whither human capital? The woeful tale of transition to tertiary education in India," Applied Economics Letters, Taylor & Francis Journals, vol. 19(9), pages 835-838, June.
  2. Asadullah, Niaz & Kambhampati, Uma & López Bóo, Florencia, 2012. "Social Divisions in School Participation and Attainment in India: 1983-2004," IZA Discussion Papers 6329, Institute for the Study of Labor (IZA).

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