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Caste dominance and economic performance in rural India

Author

Listed:
  • Vegard Iversen

    (Indian Statistical Institute, New Delhi)

  • Adriaan Kalwij

    (Utrecht University)

  • Arjan Verschoor

    (University of East Anglia)

  • Amaresh Dubey

    (Jawaharlal Nehru University)

Abstract
Using a unique household panel data set for rural India covering the years 1993/1994 and 2004/2005 we test a key theoretical assertion of caste and its effects, namely that marginalised social groups fare worse in terms of income levels when resident in villages dominated by upper castes. We also test whether marginalised groups perform better or worse in villages where their own group is dominant. We proceed to explore the implications for income growth and for poverty incidence and persistence. After controlling for potential locational confounds, upper caste dominance confers a positive externality on other social groups. This externality is discounted by group specific `oppression' effects which range in size from zero to 16 percent of mean income and peak for Scheduled Caste (SC) and Other Backward Classes (OBC) households. Further, we identify positive and large own dominance (village `enclave') effects that account for as much as a quarter of mean income for SC households in the post reform years. These results are robust to how dominance is measured. We also identify pathways through which identity-based welfare disparities may be reduced; while such disparities are widening, their causes show signs of both persistence and change. Whereas education matters, land redistribution provides the key to eliminating the adverse effects of upper caste dominance. Even after factor endowment and other controls have been added, and with the notable exception of those in SC dominated villages, SCs not only perform worse than other groups but have fallen further behind during the post reform years.

Suggested Citation

  • Vegard Iversen & Adriaan Kalwij & Arjan Verschoor & Amaresh Dubey, 2010. "Caste dominance and economic performance in rural India," Discussion Papers 10-01, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:10-01
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    Cited by:

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    3. Paola A. Barrientos Q. & Niels-Hugo Blunch & Nabanita Datta Gupta, 2015. "Income Convergence and the Flow out of Poverty in India, 1994-2005," Economics Working Papers 2015-09, Department of Economics and Business Economics, Aarhus University.
    4. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2017. "Is Caste Destiny? Occupational Diversification among Dalits in Rural India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 476-492, April.
    5. Pieter Serneels & Stefan Dercon, 2021. "Aspirations, Poverty, and Education. Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 57(1), pages 163-183, January.
    6. Dasgupta, Indraneel & Pal, Sarmistha, 2021. "Touch thee not: Group conflict, caste power and untouchability in rural India," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 442-466.
    7. Bert Van Landeghem & Anneleen Vandeplas, 2016. "Lower in rank, but happier: the complex relationship between status and happiness," Working Papers of LICOS - Centre for Institutions and Economic Performance 556194, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    8. Van Landeghem, Bert & Vandeplas, Anneleen, 2018. "The relationship between status and happiness: Evidence from the caste system in rural India," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 77(C), pages 62-71.
    9. Bailwal, Neha & Paul, Sourabh Bikas, 2024. "Village dominance and learning gaps in rural India," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 52-73.
    10. Nanarpuzha, Rajesh & Sarin, Ankur, 2021. "A capability pathway to subjective economic well-being: Looking beyond materialism," Journal of Business Research, Elsevier, vol. 127(C), pages 66-76.
    11. Mosse, David, 2018. "Caste and development: Contemporary perspectives on a structure of discrimination and advantage," World Development, Elsevier, vol. 110(C), pages 422-436.
    12. Manasi Bera & Amaresh Dubey, 2020. "Structure and Changes in Household Income and Employment Across Social Groups in Rural India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 407-435, June.
    13. Vijesh V Krishna & Lagesh M Aravalath & Surjit Vikraman, 2019. "Does caste determine farmer access to quality information?," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-22, January.
    14. Manasi Bera & Amaresh Dubey, 0. "Structure and Changes in Household Income and Employment Across Social Groups in Rural India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 0, pages 1-29.
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    16. Jann Goedecke & Isabelle Guérin & Bert D'Espallier & Govindan Venkatasubramanian, 2018. "Why do financial inclusion policies fail in mobilizing savings from the poor? Lessons from rural south India," Development Policy Review, Overseas Development Institute, vol. 36(S1), pages 201-219, March.
    17. Krishna, V. & Vikraman, S. & Aravalath, L., 2018. "Caste-based social segregation and access to public extension services in India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276944, International Association of Agricultural Economists.
    18. Mahadevan, Renuka & Suardi, Sandy, 2013. "Is there a role for caste and religion in food security policy? A look at rural India," Economic Modelling, Elsevier, vol. 31(C), pages 58-69.
    19. Vegard Iversen & Anirudh Krishna & Kunal Sen, 2016. "Rags to riches? Intergenerational occupational mobility in India," Global Development Institute Working Paper Series 042016, GDI, The University of Manchester.
    20. H.S. Shergill, 2017. "Living Conditions and Consumption Standard of Rural Dalits: A Comparison across the States," Indian Journal of Human Development, , vol. 11(1), pages 76-88, April.

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