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  3. Journal of Economic Literature
  4. December 2019
  5. Caste and the Indian Economy

Journal of Economic Literature

ISSN 0022-0515 (Print) | ISSN 2328-8175 (Online)

Caste and the Indian Economy

  • Kaivan Munshi
Journal of Economic Literature
vol. 57, no. 4, December 2019
(pp. 781–834)
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Abstract

Caste plays a role at every stage of an Indian's economic life, in school, university, the labor market, and into old age. The influence of caste extends beyond private economic activity into the public sphere, where caste politics determine access to public resources. The aggregate evidence indicates that there has been convergence in education, occupations, income, and access to public resources across caste groups in the decades after independence. Some of this convergence is likely due to affirmative action, but caste-based networks could also have played an equalizing role by exploiting the opportunities that became available in a globalizing economy. Ethnic networks were once active in many advanced economies but ceased to be salient once markets developed. With economic development, it is possible that caste networks will cease to be salient in India. The affirmative action programs may also be rolled back, and (statistical) discrimination in urban labor markets may come to an end if and when there is convergence across caste groups. In the interim period, however, it is important to understand the positive and negative consequences of caste involvement across a variety of spheres in the Indian economy.

Citation

Munshi, Kaivan. 2019. "Caste and the Indian Economy." Journal of Economic Literature, 57 (4): 781–834. DOI: 10.1257/jel.20171307

Additional Materials

JEL Classification

  • G22 Insurance; Insurance Companies; Actuarial Studies
  • J15 Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • J71 Labor Discrimination
  • O15 Economic Development: Human Resources; Human Development; Income Distribution; Migration
  • O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
  • Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification