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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

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  • Manisha Chakrabarty

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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 likethe 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 1987-2005 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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  • Sumon Kumar Bhaumik & Manisha Chakrabarty, 2008. "Is Education the Panacea for Economic Deprivation of Muslims? Evidence from Wage Earners in India, 1987-2004," CEDI Discussion Paper Series 08-02, Centre for Economic Development and Institutions(CEDI), Brunel University.
  • Handle: RePEc:edb:cedidp:08-02
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    Cited by:

    1. M. Niaz Asadullah & Uma Kambhampati & Florencia Lopez Boo, 2014. "Social divisions in school participation and attainment in India: 1983–2004," Cambridge Journal of Economics, Oxford University Press, vol. 38(4), pages 869-893.
    2. Azam Mehtabul, 2010. "India's Increasing Skill Premium: Role of Demand and Supply," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-28, October.
    3. 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.
    4. Ahmed, Salma, 2015. "Dynamics and diversity: How are religious minorities faring in the labour Market in Bangladesh?," MPRA Paper 75153, University Library of Munich, Germany, revised 18 Nov 2016.
    5. Thierry BAUDASSE & Ahmed DRIOUCHI, 2007. "Variety of Cultural Values and the Role of Education & Research for the Improvement of Intercultural Dialogues," LEO Working Papers / DR LEO 1742, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    6. Javier Escobal & Eva Flores, 2009. "Maternal Migration and Child Well-being in Peru(Migración materna y bienestar infantil en el Perú)," Documentos de Trabajo (Niños del Milenio-GRADE) ninosm56, Niños del Milenio (Young Lives).
    7. Escobal, Javier & Flores, Eva, 2009. "Maternal Migration and Child Well-Being in Peru," MPRA Paper 56463, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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