Caste Wise Earning Discrimination among Rural Non-farm Sector Workers in India

Abstract

This study investigates wage discrimination among non-farm workers, including both regular and casual workers, in rural India between the forward caste (FC) and backward caste (BC). Using data from NSSO unit-level employment and unemployment surveys from 2004–2005 and 2011–2012, as well as periodic labour force surveys from 2017–2018 to 2019–2020, the study found that the wage differential between FC and BC non-farm employees increased over time, with BC workers being paid less than FC workers. To determine the factors contributing to the wage difference, a linear regression model was used, and the decomposition method was employed to examine whether the difference was due to endowment or discrimination effects. Overall, the study highlights the persistence of caste-based wage discrimination in rural non-farm employment in India. For the betterment of BC workers and to reduce discrimination, the policies and programmes which are implemented by the government need to be revived.