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Earnings and Caste: An Evaluation of Caste Wage Differentials in the Nepalese Labour Market

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  • Ram Mainali
  • Saqib Jafarey
  • Gabriel Montes-Rojas

Abstract

This paper examines the sources of wage differentials among castes in Nepal, a country which had, until 1963, an age-old caste-based social division of labour. We use an extended Oaxaca decomposition model with occupation and firm size augmenting the conventionally used measures of human capital endowments. Our results indicate that caste wage differentials in Nepal are large and that human capital endowments and lack of access to better paying occupations and larger firms have a significant impact. Furthermore, we find mixed evidence that the government policy of affirmative action has narrowed down the caste wage differential.

Suggested Citation

  • Ram Mainali & Saqib Jafarey & Gabriel Montes-Rojas, 2017. "Earnings and Caste: An Evaluation of Caste Wage Differentials in the Nepalese Labour Market," Journal of Development Studies, Taylor & Francis Journals, vol. 53(3), pages 396-421, March.
  • Handle: RePEc:taf:jdevst:v:53:y:2017:i:3:p:396-421
    DOI: 10.1080/00220388.2016.1189535
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    References listed on IDEAS

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    Cited by:

    1. Chakravarty, Shubha & Lundberg, Mattias & Nikolov, Plamen & Zenker, Juliane, 2019. "Vocational training programs and youth labor market outcomes: Evidence from Nepal," Journal of Development Economics, Elsevier, vol. 136(C), pages 71-110.
    2. Eline D'Haene & Sam Desiere & Marijke D'Haese & Wim Verbeke & Koen Schoors, 2019. "Religion, Food Choices And Demand Seasonality: Evidence From The Ethiopian Milk Market," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 19/969, Ghent University, Faculty of Economics and Business Administration.

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