This paper uses National Sample Survey data to examine the wage gap between higher castes and the scheduled castes/tribes in the regular salaried urban labour market. The main conclusions we draw are (a) discrimination causes 15 per cent lower wages for SC/STs as compared to equally qualified others; (b) SC/ST workers are discriminated against both in the public and private sectors, but the discrimination effect is much larger in the private sector; (c) discrimination accounts for a large part of the gross earnings difference between the two social groups in the regular salaried urban labour market, with occupational discrimination - unequal access to jobs - being considerably more important than wage discrimination - unequal pay in the same job; and (d) the endowment difference is larger than the discrimination component.
