IDEAS home Printed from https://ideas.repec.org/a/spr/jlabrs/v47y2014i4d10.1007_s12651-013-0152-z.html
   My bibliography  Save this article

Gender and caste-based wage discrimination in India: some recent evidence
[Geschlecht und Kaste-ansässige Lohndiskriminierung in Indien: Einige Neue Beweise]

Author

Listed:
  • Tushar Agrawal

    (National Council of Applied Economic Research (NCAER))

Abstract

This paper examines gender and social groups wage discrimination in India using a nationally representative survey. We examine the wage gaps between different sub-groups of population separately in the rural and urban sectors using the Blinder-Oaxaca decomposition method. To account for possibility of the sample selection bias, the Heckman correction model is employed. We find a large wage differential between gender groups and between different social groups. The decomposition analysis reveals that the wage differential between males and females can largely be attributed to discrimination in the labor market. Nevertheless, in case of social groups this gap is mostly driven by differences in endowments.

Suggested Citation

  • Tushar Agrawal, 2014. "Gender and caste-based wage discrimination in India: some recent evidence [Geschlecht und Kaste-ansässige Lohndiskriminierung in Indien: Einige Neue Beweise]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(4), pages 329-340, December.
  • Handle: RePEc:spr:jlabrs:v:47:y:2014:i:4:d:10.1007_s12651-013-0152-z
    DOI: 10.1007/s12651-013-0152-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12651-013-0152-z
    File Function: Abstract
    Download Restriction: no

    File URL: https://libkey.io/10.1007/s12651-013-0152-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Deshpande, Ashwini, 2001. "Caste at Birth? Redefining Disparity in India," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 130-144, February.
    2. Sripad Motiram & Ashish Singh, 2012. "How close does the apple fall to the tree? Some evidence on intergenerational occupational mobility from India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. Doris Weichselbaumer & Rudolf Winter‐Ebmer, 2005. "A Meta‐Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 479-511, July.
    4. Geeta Gandhi Kingdon & Jeemol Unni, 2001. "Education and Women's Labour Market Outcomes in India," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 173-195.
    5. Geeta Gandhi Kingdon & Nicolas Theopold, 2008. "Do returns to education matter to schooling participation? Evidence from India," Education Economics, Taylor & Francis Journals, vol. 16(4), pages 329-350.
    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. Sripad Motiram & Ashish Singh, 2012. "How Close Does the Apple Fall to the Tree?: Some Evidence on Intergenerational Occupational Mobility from India," WIDER Working Paper Series wp-2012-101, World Institute for Development Economic Research (UNU-WIDER).
    8. Geeta Gandhi Kingdon, 1998. "Does the labour market explain lower female schooling in India?," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 39-65.
    9. Ito, Takahiro, 2009. "Caste discrimination and transaction costs in the labor market: Evidence from rural North India," Journal of Development Economics, Elsevier, vol. 88(2), pages 292-300, March.
    10. Duraisamy, P., 2002. "Changes in returns to education in India, 1983-94: by gender, age-cohort and location," Economics of Education Review, Elsevier, vol. 21(6), pages 609-622, December.
    11. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, vol. 85(3), pages 365-390, June.
    12. 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.
    13. Mohammad Niaz Asadullah, 2006. "Returns to Education in Bangladesh," Education Economics, Taylor & Francis Journals, vol. 14(4), pages 453-468.
    14. Banerjee, Biswajit & Knight, J. B., 1985. "Caste discrimination in the Indian urban labour market," Journal of Development Economics, Elsevier, vol. 17(3), pages 277-307, April.
    15. Tushar Agrawal, 2011. "Returns to education in India: Some recent evidence," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2011-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    16. Deshpande, Ashwani, 2011. "The Grammar of Caste: Economic Discrimination in Contemporary India," OUP Catalogue, Oxford University Press, number 9780198072034.
    17. Ashwini Deshpande, 2000. "Recasting Economic Inequality," Review of Social Economy, Taylor & Francis Journals, vol. 58(3), pages 381-399.
    18. Patrick Puhani, 2000. "The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    19. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    20. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    21. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    22. Sripad Motiram & Ashish Singh, 2012. "How close does the apple fall to the tree? Some evidence on intergenerational occupational mobility from India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-017, Indira Gandhi Institute of Development Research, Mumbai, India.
    23. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    24. Ashish Singh & Upasak Das & Tushar Agrawal, 2013. "How Inclusive Has Regular Employment Been in India? A Dynamic View," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(3), pages 486-494, July.
    25. Dolton, P J & Makepeace, G H, 1986. "Sample Selection and Male-Female Earnings Differentials in the Graduate Labour Market," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 317-341, July.
    26. Ashwini Deshpande, 2001. "Caste at Birth? Redefining Disparity in India," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 130-144, February.
    27. Tushar Agrawal, 2013. "Educational attainment in educationally backward states of India: some implications for the Right to Education Act," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 4(1), pages 89-99.
    28. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    29. Kaivan Munshi & Mark Rosenzweig, 2006. "Traditional Institutions Meet the Modern World: Caste, Gender, and Schooling Choice in a Globalizing Economy," American Economic Review, American Economic Association, vol. 96(4), pages 1225-1252, September.
    30. Sumon Kumar Bhaumik & Manisha Chakrabarty, 2008. "Does move to market have an impact on earnings gap across gender? Some evidence from India," Applied Economics Letters, Taylor & Francis Journals, vol. 15(8), pages 601-605.
    31. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    32. Desai, Sonalde & Dubey, Amaresh & Joshi, Brij Lal & Sen, Mitali & Sharif, Abusaleh & Vanneman, Reeve, 2010. "Human Development in India: Challenges for a Society in Transition," OUP Catalogue, Oxford University Press, number 9780198065128.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Satinder Singh & J. K. Parida & I. C. Awasthi, 2020. "Employability and Earning Differentials Among Technically and Vocationally Trained Youth in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 363-386, June.
    2. Anjan Ray Chaudhury & Madhabendra Sinha, 2020. "Does Education Produce Identical Labour Market Outcomes for All? A Study on India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(3), pages 309-331, August.
    3. Aswini Kumar Mishra & Vedant Bhardwaj, 2021. "Wealth distribution and accounting for changes in wealth inequality: empirical evidence from India, 1991–2012," Economic Change and Restructuring, Springer, vol. 54(2), pages 585-620, May.
    4. Manik Kumar & Sweety Pandey, 2021. "Wage Gap Between Formal and Informal Regular Workers in India: Evidence from the National Sample Survey," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(1), pages 104-121, January.
    5. Balakarushna Padhi & Udaya S. Mishra & Urmi Pattanayak, 2019. "Gender-Based Wage Discrimination in Indian Urban Labour Market: An Assessment," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(3), pages 361-388, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Manik Kumar & Sweety Pandey, 2021. "Wage Gap Between Formal and Informal Regular Workers in India: Evidence from the National Sample Survey," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(1), pages 104-121, January.
    2. Anjan Ray Chaudhury & Madhabendra Sinha, 2020. "Does Education Produce Identical Labour Market Outcomes for All? A Study on India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(3), pages 309-331, August.
    3. Satinder Singh & J. K. Parida & I. C. Awasthi, 0. "Employability and Earning Differentials Among Technically and Vocationally Trained Youth in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 0, pages 1-24.
    4. Satinder Singh & J. K. Parida & I. C. Awasthi, 2020. "Employability and Earning Differentials Among Technically and Vocationally Trained Youth in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 363-386, June.
    5. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    6. Dominique Meurs & Sophie Ponthieux, 2006. "L'écart des salaires entre les femmes et les hommes peut-il encore baisser ?," Économie et Statistique, Programme National Persée, vol. 398(1), pages 99-129.
    7. Sandeep Mohapatra & Bruno Wichmann & Philippe Marcoul, 2018. "Removing The “Veil Of Ignorance”: Nonlinearities In Education Effects On Gender Wage Inequalities," Contemporary Economic Policy, Western Economic Association International, vol. 36(4), pages 644-666, October.
    8. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    9. Deshpande, Ashwini & Goel, Deepti & Khanna, Shantanu, 2018. "Bad Karma or Discrimination? Male–Female Wage Gaps Among Salaried Workers in India," World Development, Elsevier, vol. 102(C), pages 331-344.
    10. S. Madheswaran & Smrutirekha Singhari, 2016. "Social exclusion and caste discrimination in public and private sectors in India: A decomposition analysis," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(2), pages 175-201, June.
    11. Ravi Srivastava, 2019. "Emerging Dynamics of Labour Market Inequality in India: Migration, Informality, Segmentation and Social Discrimination," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 62(2), pages 147-171, June.
    12. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    13. Somasree Poddar & Ishita Mukhopadhyay, 2019. "Gender Wage Gap: Some Recent Evidences from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 121-151, March.
    14. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
    15. Noe', Chiara, 2009. "Subject of degree and the gender wage gap: Evidence from Italy," MPRA Paper 47289, University Library of Munich, Germany.
    16. Tymon Słoczyński, 2020. "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 73(3), pages 705-729, May.
    17. Indrani Chakraborty & Achin Chakraborty, 2010. "Female Work Participation and Gender Differential in Earning in West Bengal," Working Papers id:2438, eSocialSciences.
    18. Singhari, Smrutirekha & Madheswaran, S., 2016. "Social exclusion and caste discrimination in public and private sectors in India: A decomposition analysis," Working Papers 361, Institute for Social and Economic Change, Bangalore.
    19. Ricardo Mora, 2008. "A nonparametric decomposition of the Mexican American average wage gap," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(4), pages 463-485.
    20. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.

    More about this item

    Keywords

    Gender; Social groups; Wage differential; Blinder-Oaxaca decomposition; India;
    All these keywords.

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jlabrs:v:47:y:2014:i:4:d:10.1007_s12651-013-0152-z. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.