Abstract: India has witnessed a remarkable catch-up by the historically disadvantaged scheduled castes and tribes (SC/STs) towards non-SC/ST levels in their education attainment levels, occupation choices as well as wages during the period 1983-2012. Using a heterogenous agent, multi-sector model we show that sectoral productivity growth during this period can explain 75 percent of the observed wage convergence between the castes. Inter-sectoral net flows of workers are key as they account for 3/4 of the predicted convergence. Absent these net flows, the...
(read more)
Topics: 
Econometrics