The distribution of resources and the accumulation of wealth is an unequal process, which is based on power relations, the capacity of various groups to lobby for their interests and influence the government’s agenda, and the targeting of government policies. Economic exclusion also refers to the exclusion of workers (either totally or partially) from three basic markets: labour, credit, and insurance. Applying the social exclusion approach to labour markets highlights the real and growing differences between the employed and the unemployed, between open and underground economies, and between the formal and informal sectors.
Whilst this exclusion plays an important role in the reproduction of inequality, it is also itself the result of inequalities, in access to resources, employment, education, and public services. Educational status, particularly illiteracy, can be an important cause of exclusion from the labour market.
Justino, P. & Litchfield, J. (2005). Economic Exclusion and Discrimination: The Experience of Minorities and Indigenous Peoples. Minority Rights Group International.
What are the links between discrimination against ethnic minorities and indigenous peoples and their exclusion from economic life? This paper surveys the various forms of discrimination faced by minority and indigenous populations and analyses the causes of the economic exclusion they experience. It argues that discrimination is a central obstacle to development among these groups and, as such, should be a key concern in policy-making.
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Exclusion from the labour market can also result from outright discrimination on the grounds of ethnicity, religion, gender, age or social class.
Thorat, S., Attewell, P., & Rizvi, F. F. (2009). Urban Labour Market Discrimination. Indian Institute of Dalit Studies.
Do caste and religion influence a graduate’s employment opportunities in India’s private sector? This paper examines the prevalence of discrimination in the job application processes of modern private sector enterprises. It finds that discriminatory processes operate even at the first stage of the application process. Caste favouritism and social exclusion still exist in the labour market in today’s urban India.
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