Earnings Inequality in India: Has the Rise of Caste and Religion Based Politics in India Had an Impact?
Since 1989, there has been a sharp increase in the role of caste and religion in determining political fortunes at both state and federal levels in India. As a consequence, significant inter-caste and inter-religion differences in earnings have the potential to stall the process of economic reforms. Yet, the patterns and determinants of such differences remain unexplored. We address this lacuna in the literature, and explore the determinants of the differences in inter-caste and inter-religion earnings in India during the 1987-99 period, using the 43rd and 55th rounds of National Sample Survey (NSS). Our results suggest that (a) earnings differences between "upper" castes and SC/ST have declined between 1987 and 1999, (b) over the same period, earnings differences between Muslims and non-Muslims have increased, to the detriment of the former, and (c) inter-caste and inter-religion differences in earnings can be explained largely by corresponding differences in educational endowment and returns on age (and, hence, experience). However, differences in returns on education do not explain inter-caste and inter-religion earnings differences to a great extent.
|Date of creation:||Mar 2006|
|Publication status:||published in: A. Shariff and R. Besant (eds.), Handbook of Muslims in India, Oxford University Press, 2010, New Delhi|
|Contact details of provider:|| Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany|
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yang, Dennis Tao, 2005. "Determinants of schooling returns during transition: Evidence from Chinese cities," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 244-264, June.
- Persson, T. & Tabellini, G., 1993.
"Is Inequality Harmful for Growth,"
537, Stockholm - International Economic Studies.
- 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.
- Kijima, Yoko, 2006. "Why did wage inequality increase? Evidence from urban India 1983-99," Journal of Development Economics, Elsevier, vol. 81(1), pages 97-117, October.
- Munich, Daniel & Svejnar, Jan & Terrell, Katherine, 2005. "Is women's human capital valued more by markets than by planners?," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 278-299, June.
- Meenakshi, J. V. & Ray, Ranjan, 2002.
"Impact of household size and family composition on poverty in rural India,"
Journal of Policy Modeling,
Elsevier, vol. 24(6), pages 539-559, October.
- J.V. Meenakshi & Ranjan Ray, 2000. "Impact of Household Size and Family Composition on Poverty in Rural India," ASARC Working Papers 2000-02, The Australian National University, Australia South Asia Research Centre.
- Ira N. Gang & Myeong-Su Yun & Kunal Sen, 2002.
"Caste, Ethnicity and Poverty in Rural India,"
Departmental Working Papers
200225, Rutgers University, Department of Economics.
- Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
- Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
- Datt, Gaurav & Ravallion, Martin, 1997.
"Macroeconomic Crises and Poverty Monitoring: A Case Study for India,"
Review of Development Economics,
Wiley Blackwell, vol. 1(2), pages 135-52, June.
- Datt, Gaurav & Ravallion, Martin, 1996. "Macroeconomic crises and poverty monitoring : a case study for India," Policy Research Working Paper Series 1685, The World Bank.
- Heckman, James & Layne-Farrar, Anne & Todd, Petra, 1996. "Human Capital Pricing Equations with an Application to Estimating the Effect of Schooling Quality on Earnings," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 562-610, November.
- Angus Deaton & Jean Dreze, 2002.
"Poverty and Inequality in India: A Re-Examination,"
184, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
- Krishna, Anirudh, 2006. "Pathways out of and into poverty in 36 villages of Andhra Pradesh, India," World Development, Elsevier, vol. 34(2), pages 271-288, February.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp2008. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.