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Identity, Perceptions and Institutions: Caste Differences in Earnings from Self-Employment in India

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  • Goel, Deepti

    (Pitzer College)

  • Deshpande, Ashwini

    (Ashoka University)

Abstract

Using data from two rounds of the Employment-Unemployment Survey of the National Sample Survey for 2004-5 and 2009-10, we investigate the relationship between social identity, specifically caste identity in India, and perceptions of self-worth as measured by the amounts that individuals consider as remunerative earnings from self-employment. We also investigate if institutional change (e.g. a policy intervention such as an employment guarantee program, or change in the ruling party in power) mitigates this relationship. Finally, we examine the relationship between caste identity and actual earnings, and how institutional change can influence it. Our main finding is that caste identity in contemporary India does shape perceptions of self-worth. Among the fully self-employed, we find that controlling for other characteristics, lower-ranked groups earn lower amounts and perceive lower amounts as being remunerative. Further, institutional factors alter self-perceptions differentially for different caste groups, but in more nuanced ways than our ex-ante beliefs.

Suggested Citation

  • Goel, Deepti & Deshpande, Ashwini, 2016. "Identity, Perceptions and Institutions: Caste Differences in Earnings from Self-Employment in India," IZA Discussion Papers 10198, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10198
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    11. Berg, Erlend & Bhattacharyya, Sambit & Rajasekhar, D. & Manjula, R., 2018. "Can public works increase equilibrium wages? Evidence from India’s National Rural Employment Guarantee," World Development, Elsevier, vol. 103(C), pages 239-254.
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    Cited by:

    1. Jagannadha Pawan Tamvada & Mili Shrivastava & Tapas Kumar Mishra, 2022. "Education, social identity and self-employment over time: evidence from a developing country," Small Business Economics, Springer, vol. 59(4), pages 1449-1468, December.
    2. Mosse, David, 2018. "Caste and development: Contemporary perspectives on a structure of discrimination and advantage," World Development, Elsevier, vol. 110(C), pages 422-436.
    3. Ishika Gupta & Prakashan Chellattan Veettil & Stijn Speelman, 2020. "Caste, Social Networks and Variety Adoption," Journal of South Asian Development, , vol. 15(2), pages 155-183, August.
    4. Varshney, Deepak & Mishra, Ashok K. & Joshi, Pramod K. & Roy, Devesh, 2022. "Social networks, heterogeneity, and adoption of technologies: Evidence from India," Food Policy, Elsevier, vol. 112(C).
    5. Gupta, I. & Veettil, P.C. & Speelman, S., 2018. "Caste, Technology and Social Networks," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277048, International Association of Agricultural Economists.

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    More about this item

    Keywords

    remunerative earnings; caste discrimination; political economy;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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