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Abstract

This paper examines labor market disparities across various caste-ethnic groups in Nepal using the 2004 and 2011 Nepal Living Standards Survey data. We study annual wage and salary employment to identify the disparities at both the individual and group levels. First, we use panel regression to capture the disparities in wage and employment and then employ the Blinder-Oaxaca decomposition method to identify the determinants of these disparities across various caste-ethnic groups. The results show that individual, household, and caste-ethnicity specific factors are all critical determinants of labor market outcomes. The results indicate education as a key contributor to employment disparities that explains much of the gap between groups. The findings also suggest potential discrimination against Dalits and Janajati-Adivasi in the job market. The study contributes to the understanding of Nepal's labor market disparities across caste-ethnic groups and offers insights relevant to other developing economies sharing similar socioeconomic and cultural traits.

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