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The Effectiveness of Jobs Reservation: Caste, Religion, and Economic Status in India

Author

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  • Borooah, Vani
  • Dubey, Amaresh
  • Iyer, Sriya

Abstract

This article investigates the effect of jobs reservation on improving the economic opportunities of persons belonging to India’s Scheduled Castes (SC)and Scheduled Tribes (ST). Using employment data from the 55th NSS round, the authors estimate the probabilities of different social groups in India being in one of three categories of economic status: own account workers; regular salaried or wage workers; casual wage labourers. Theseprobabilities are then used to decompose the difference between a group X and forward caste Hindus in the proportions of their members in regular salaried or wage employment. This decomposition allows us to distinguish between two forms of difference between group X and forward caste Hindus: ‘attribute’ differences and ‘coefficient’ differences. The authors measure the effects of positive discriminationin raising the proportions of ST/SC persons in regular salaried employment, and the discriminatory bias against Muslims who do not benefit from such policies. They conclude that the boost provided by jobs reservation policies was around 5 percentage points. They also conclude that an alternative and more effective way of raising the proportion of men from the SC/ST groups in regular salaried or wageemployment would be to improve theiremployment-related attributes.

Suggested Citation

  • Borooah, Vani & Dubey, Amaresh & Iyer, Sriya, 2007. "The Effectiveness of Jobs Reservation: Caste, Religion, and Economic Status in India," MPRA Paper 19421, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:19421
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    File URL: https://mpra.ub.uni-muenchen.de/19421/1/MPRA_paper_19421.pdf
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Vani K. Borooah, 2005. "Caste, Inequality, and Poverty in India," Review of Development Economics, Wiley Blackwell, vol. 9(3), pages 399-414, August.
    4. Vani Borooah & Sriya Iyer, 2005. "Vidya, Veda, and Varna: The influence of religion and caste on education in rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 41(8), pages 1369-1404.
    5. Schmidt, Peter & Strauss, Robert P, 1975. "The Prediction of Occupation Using Multiple Logit Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 471-486, June.
    6. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    7. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
    8. Borooah, Vani K, 2001. "How Do Employees of Ethnic Origin Fare on the Occupational Ladder in Britain?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(1), pages 1-26, February.
    9. Borooah, Vani K & Mangan, John, 2002. "An Analysis of Occupational Outcomes for Indigenous and Asian Employees in Australia," The Economic Record, The Economic Society of Australia, vol. 78(240), pages 31-49, March.
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    Citations

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    Cited by:

    1. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2008. "Was the Mandal Commission Right? Living Standard Differences between Backward Classes and Other Social Groups in India," CEDI Discussion Paper Series 08-12, Centre for Economic Development and Institutions(CEDI), Brunel University.
    2. Mehtabul Azam, 2012. "A distributional analysis of social group inequality in rural India," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(4), pages 415-432, May.
    3. Chen, Hung-Ju & Sultana, Rezina, 2013. "Job Reservation and Intergenerational Transmission of Preferences," MPRA Paper 45036, University Library of Munich, Germany.
    4. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 163-193, October.
    5. Bhaumik, Sumon Kumar & Chakrabarty, Manisha, 2009. "Is education the panacea for economic deprivation of Muslims?: Evidence from wage earners in India, 1987-2005," Journal of Asian Economics, Elsevier, vol. 20(2), pages 137-149, March.
    6. 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.
    7. Sultana, R., 2011. "Reversal of Envy," Cambridge Working Papers in Economics 1106, Faculty of Economics, University of Cambridge.
    8. repec:eee:aosoci:v:63:y:2017:i:c:p:42-59 is not listed on IDEAS
    9. Borooah, Vani, 2010. "Social Exclusion and Jobs Reservation in India," MPRA Paper 28668, University Library of Munich, Germany.
    10. Raghav Gaiha & Ganesh Thapa & Katsushi Imai & Vani S. Kulkarni, 2007. "Endowments, discrimination and deprivation among ethnic groups," The School of Economics Discussion Paper Series 0722, Economics, The University of Manchester.
    11. World Bank, 2011. "Perspectives on Poverty in India : Stylized Facts from Survey Data," World Bank Publications, The World Bank, number 2299, April.
    12. Borooah, Vani, 2010. "Inequality in health outcomes in India: the role of caste and religion," MPRA Paper 19832, University Library of Munich, Germany.

    More about this item

    Keywords

    Affirmative Action; Social Groups; India;

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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