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Business and labor market flexibility in India: the importance of caste

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  • Saez, Lawrence
  • Mahmood, Zaad

Abstract

Since the enactment of economic liberalization in India in the early 1990s, variation in investment climate and labor market reforms across sub-national states has been linked to the increasing relevance of business in policy making. This article argues that the influence of business on policy is conditioned by wider political dynamics. We argue that the reform orientation of states correspond to the position of business classes and caste-based groups within the support base of political parties. We show that caste identification plays an important role on the position of political parties towards business liberalization policies. Thus, we conclude that the relative power of business across the states appears to vary due to the relation between business and government, which in turn is structured by the salience of business castes as an electorally relevant group.

Suggested Citation

  • Saez, Lawrence & Mahmood, Zaad, 2016. "Business and labor market flexibility in India: the importance of caste," Business and Politics, Cambridge University Press, vol. 18(2), pages 171-198, August.
    • Handle: RePEc:cup:buspol:v:18:y:2016:i:02:p:171-198_00
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    Cited by:

    1. Zaad Mahmood, 2020. "Governance and Electoral Integrity: Evidence from Subnational India," Studies in Indian Politics, , vol. 8(2), pages 230-246, December.
    2. Zaad Mahmood & Supurna Banerjee, 2023. "Towards what end? Collective bargaining and the making and unmaking of the working class," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 44(4), pages 964-985, November.

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