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On the Risks of Belonging to Disadvantaged Groups: A Bayesian Analysis of Labour Market Outcomes

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  • Borooah, Vani

Abstract

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.

Suggested Citation

  • Borooah, Vani, 2010. "On the Risks of Belonging to Disadvantaged Groups: A Bayesian Analysis of Labour Market Outcomes," MPRA Paper 19742, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19742
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    References listed on IDEAS

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    1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, October.
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    Cited by:

    1. Vani K. Borooah & Colin Knox, 2015. "The Economics of Schooling in a Divided Society," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-46187-2.
    2. SWATI Sharma, 2016. "Does Education Determine Employment: Peculiarities Of The Indian Labour Market," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 164-180, April.
    3. Basant, Rakesh, 2012. "Education and Employment among Muslims in India: An Analysis of Patterns and Trends," IIMA Working Papers WP2012-09-03, Indian Institute of Management Ahmedabad, Research and Publication Department.

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    More about this item

    Keywords

    Labour Market; Risk Ratio; India; Caste; Religion;
    All these keywords.

    JEL classification:

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

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