Village dominance and learning gaps in rural India

In this paper, we show that the village social structure shapes the learning outcome of marginalised children in rural India. Exploiting the variation in the dominant social group in the village, we find a significant impact of village dominance. The reading and arithmetic skills of Scheduled Castes are better in their own castes-dominated villages compared to higher castes-dominated villages. Our findings show that village dominance affects learning outcomes primarily through differential teachers' behaviour. Children from marginalised castes are more likely to be scolded, beaten up, and treated unfairly by teachers in villages dominated by higher castes compared to their own castes. We do not find evidence of other mechanisms like the difference in parent and children's aspirations, caste diversity, discrimination in the village, or positive group externalities, which could explain why children from Scheduled Castes fare better in their own castes-dominated villages.