Caste and Religion-Based Wage Discrimination in the Indian Private Sector: Evidence from the Indian Human Development Survey

Using data from the IHDS, we examine evidence of caste and religion-based discrimination in the Indian private sector compared with the public sector for both Dalits and Adivasis. This is result of affirmative action policies in the government institutions, and arise the question if similar affirmative action should be implemented in the private sector?

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Abstract
Using data from the Indian Human Development Survey, we examine evidence of caste and religion-based discrimination in the Indian private and public sector. Both Dalits and Adivasis show significant results of discrimination in the private sector, and benefit disproportionately from working in the public sector. This is strong evidence that at least some of the affirmative action policies in the public sector are proving effective. The policy implications are relevant: should similar affirmative action policies be implemented in the private sector? Further, this research suggests a path for further research to understand why protected castes do not benefit from affirmative action programs to the same extent as Dalits and Adivasis.