IDEAS home Printed from https://ideas.repec.org/p/cty/dpaper/13-01.html
   My bibliography  Save this paper

Earnings and Social Background: An evaluation of caste/ethnic wage differentials in the Nepalese labor market

Author

Listed:
  • Mainali, R. M.
  • Jafarey, S.
  • Montes-Rojas, G.

Abstract

This paper examines the sources of wage differentials among caste/ethnic groups, employing national survey data from Nepal. Our study shows that, in countries such as Nepal which have imperfect labour markets, the conventional Oaxaca decomposition methodology fails to estimate precisely the source of wage differential. Using an extended model, occupational choice, firm size distribution and the interaction between these two are employed along with the conventionally used measures of human capital endowments of different groups, to estimate these effects. Our results indicate that the lack of access to better paying occupations and larger firms, rather than differences in human capital, are the main factors underlying the caste/ethnic wage differentia in Nepal. Furthermore, empirical evidence is not found in favour of government policy of "affirmative action" to contribute yet in narrowing down the caste/ethnic wage differential in the labour market.

Suggested Citation

  • Mainali, R. M. & Jafarey, S. & Montes-Rojas, G., 2013. "Earnings and Social Background: An evaluation of caste/ethnic wage differentials in the Nepalese labor market," Working Papers 13/01, Department of Economics, City University London.
  • Handle: RePEc:cty:dpaper:13/01
    as

    Download full text from publisher

    File URL: http://openaccess.city.ac.uk/2017/1/mainali.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Schmidt, Christoph M & Zimmermann, Klaus F, 1991. "Work Characteristics, Firm Size and Wages," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 705-710, November.
    2. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    3. Juan Pablo Atal & Hugo Nopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," Research Department Publications 4640, Inter-American Development Bank, Research Department.
    4. Darity, William A, Jr & Williams, Rhonda M, 1985. "Peddlers Forever? Culture, Competition, and Discrimination," American Economic Review, American Economic Association, vol. 75(2), pages 256-261, May.
    5. Deshpande, Ashwani, 2011. "The Grammar of Caste: Economic Discrimination in Contemporary India," OUP Catalogue, Oxford University Press, number 9780198072034.
    6. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, July.
    7. Vietorisz, Thomas & Harrison, Bennett, 1973. "Labor Market Segmentation: Positive Feedback and Divergent Development," American Economic Review, American Economic Association, vol. 63(2), pages 366-376, May.
    8. Patrinos, Harry Anthony, 1997. "Differences in education and earnings across ethnic groups in Guatemala," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(4), pages 809-821.
    9. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
    10. N. Jayaram & Surendra K. Gupta & A.P. Barnabas & Sachchidananda & P.S. Pachauri & M.L. Khattar & B.N. Sampath & H. R. Khanna, 1985. "India," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 177-179, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Labour Market Discrimination; Caste; Ethnicity;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cty:dpaper:13/01. 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: (Research Publications Librarian). General contact details of provider: http://edirc.repec.org/data/decituk.html .

    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 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.

    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.