Dismantling the Legacy of Caste - Centre For Development Economics

B4.
p ( )( h q q q )
ij 0 0 1 ij q ij m mij
p pij
( )( h q q q ) g( r s )
2
2 *
ij q ij m mij
p pij
r i j j ij
Independence of
*
ij
from r
i
and
s
j
implies that
is independent of g( r s ). Thus, it
follows from (B4) that least squares estimation of (B1) yields an unbiased estimators of
r and
the caste fixed effects
*
ij
j
. From (B4) it is also evident that the least squares estimators of the
i
j
intercept,
analysis.
i , and 2 i
in (B1) may be biased. However, those coefficients are not the focus of the
39