On the Risks of Belonging to Disadvantaged Groups: A Bayesian Analysis of Labour Market Outcomes
Although methods of analysis based on Bayes’ theorem have had rich applications in Law and in Medicine they have not been much used in Economics. We use Bayes’ theorem to construct two concepts of the “risk” associated with belonging to a particular group in terms of a favourable labour market outcome; this, in the Indian context, is taken as being in “regular employment”. The first concept, the Employment Risk Ratio, measures the odds of a person being in regular employment to being in non-regular employment, given that he belongs to a particular group. The second, the Group Risk Ratio, measures the odds of a person being in regular employment, given that he belongs to one group against belonging to another group. We then apply these concepts of risk to data for four subgroups in India: forward-caste Hindus; Hindus from the Other Backward Classes; Dalits (collectively the Scheduled Castes and Scheduled Tribes); and Muslims. We show that, on both measures of risk, forward caste Hindus do best in the Indian labour market. This is partly due to their superior labour market attributes and partly due to their better access to good jobs. When inter-group differences in attributes are neutralised, the favourable labour market performance of forward caste Hindus is considerably reduced. We conclude that it is the lack of attributes necessary for, rather than lack of access to, regular employment that holds back India’s deprived groups.
|Date of creation:||2010|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC
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.:
- Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, June.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:19742. 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: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.