On the Risk Associated With Belonging to Disadvantaged Groups: A Bayesian Analysis with an Application to Labour Market Outcomes in India

Vani Borooah

    Research output: Chapter in Book/Report/Conference proceedingChapter

    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.
    LanguageEnglish
    Title of host publicationHandbook of Muslims in India
    EditorsRakesh Basant, Abusaleh Shariff
    Pages199-220
    Publication statusPublished - 2010

    Fingerprint

    Labor market outcomes
    India
    Disadvantaged groups
    Bayesian analysis
    Caste
    Labour market
    Bayes' theorem
    Economics
    Measure of risk
    Muslims
    Tribes
    Intergroup
    Market performance
    Medicine

    Keywords

    • Labour Market
    • Risk Ratio
    • India
    • Caste
    • Religion

    Cite this

    Borooah, V. (2010). On the Risk Associated With Belonging to Disadvantaged Groups: A Bayesian Analysis with an Application to Labour Market Outcomes in India. In R. Basant, & A. Shariff (Eds.), Handbook of Muslims in India (pp. 199-220)
    Borooah, Vani. / On the Risk Associated With Belonging to Disadvantaged Groups: A Bayesian Analysis with an Application to Labour Market Outcomes in India. Handbook of Muslims in India. editor / Rakesh Basant ; Abusaleh Shariff. 2010. pp. 199-220
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    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.",
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    note = "Reference text: Aitken, C. (1996), “Lies, Damned Lies, and Expert Witnesses”, Mathematics Today, vol. 32, pp. 76-80. Becker, G.S., 1971. The Economics of Discrimination. University of Chicago Press, Chicago, 2nd edition. Cabinet Secretariat (2006), Social, Economic, and Educational Status of the Muslim Community of India, Government of India: Nw Delhi. Jeffery, R. and Jeffery, P. (1997), Population, Gender and Politics, Cambridge: Cambridge University Press. Osborne, E. (2001), “Culture, Development and Government”, Economic Development and Cultural Change, vol. 49, pp. 659-85. Matthews, R.J. (2000), “Facts versus Factions: The Use and Abuse of Subjectivity in Scientific Research”, in J. Morris (ed), Rethinking Risk and the Precautionary Principle, Butterworth Heniemann: Oxford, pp. 247-82. Phelps, E. S. (1972). {"}The Statistical Theory of Racism and Sexism{"}. American Economic Review vol. 62: 659–661 Thompson, W.C. and Schumann, E.L. (1987), “Interpretation of Statistical Evidence in Criminal Trials: the Prosector’s Fallacy and the Defense Attorney’s Fallacy”, Law and Human Behavior, vol. 11, pp. 167-187. Zackrisson, S., Andersoon, I., Janzon, L., Manjer, J., Garne, J.P. (2006), “Rate of Over-Diagnosis of Breast Cancer 15 Years after End of Malmo Mamographic Screening”, British Medical Journal, vol. 33, pp. 689-692.",
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    Borooah, V 2010, On the Risk Associated With Belonging to Disadvantaged Groups: A Bayesian Analysis with an Application to Labour Market Outcomes in India. in R Basant & A Shariff (eds), Handbook of Muslims in India. pp. 199-220.

    On the Risk Associated With Belonging to Disadvantaged Groups: A Bayesian Analysis with an Application to Labour Market Outcomes in India. / Borooah, Vani.

    Handbook of Muslims in India. ed. / Rakesh Basant; Abusaleh Shariff. 2010. p. 199-220.

    Research output: Chapter in Book/Report/Conference proceedingChapter

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    AB - 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.

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    Borooah V. On the Risk Associated With Belonging to Disadvantaged Groups: A Bayesian Analysis with an Application to Labour Market Outcomes in India. In Basant R, Shariff A, editors, Handbook of Muslims in India. 2010. p. 199-220