It is therefore important to review what we know about caste as a source of inequality before introducing the empirical papers. Ltd. Sen, Amartya (2000): ‘Social Exclusion: Concept, Application, and Scrutiny’, Working Paper, Social Development Paper No 1, Asian Development Bank, Bangkok, June. Forced into these occupations on account of their caste origin, dalits rarely experienced job satisfaction. Not surpri singly, we find at the bottom of the caste system individuals and social groups in disproportionate numbers, mired in poverty. Caste has long been used to regulate economic life in India [for a thorough historical treatment see Dirks 2001]. Indian society is a country of various religions. For the low caste untouchables on the other hand, the restriction against claiming more prestigious occu pations will compel them to remain involuntarily unemployed. Pager, Devah (2003): ‘The Mark of a Criminal Record’, American Journal of Sociology, 108 (5), pp 937-975. In order to focus as clearly as possible on discrimination, and screen out the most vexing inequalities in human capital, they focus on the formal labour market and the most highly qualified job seekers – graduates of the most prestigious universities in India. The papers presented here were conceived as tests of the proposition that discrimination is no longer an issue in Indian labour markets, particularly in the formal, private sector. Far from disappearing as the economy modernises, discrimination remains a problem which, for reasons outlined here, is not amenable to self correction, but rather requires interventionist policies to remedy. Economic and Political Weekly October 13, 2007 discrimination will see agents systematically refusing to hire or accept the participation of members of a social group despite their formal qualifications (or even overqualification), while routinely favouring members of other groups who are equally or even less qualified. Various social agencies like family, school, and Mass media must be given the responsibility to develop a proper, broad outlook among children, which will negate the feelings of casteism, for example, creating awareness about the ill-effects of perpetuating the traditional caste system. Buvinic (2005) summarises the meaning of social exclusion as follows: “The inability of an individual to participate in the basic political, economic and social functioning of society”, and goes on to add that it involves, “the denial of equal access to opportunities imposed by certain groups in society upon others”. It sets the stage for the four empirical papers that follow, by highlighting the ways in which caste persists as a system of inequality that burdens the Indian economy with inefficiencies in the allocation of labour and other critical resources, reducing the full development of human capital in society. Labour and capital fail to move from one occupation to another even when the wage rate and rate of return (on investment) is higher in alternative fields. Buvinic, Mayra (2005): ‘Social Inclusion in Latin America’ in Mayra Buvinici and Jacqueline Mazza (eds), Social Exclusion and Economic Development, pp 3-32. The following are the causes of Caste System. ii. Designed, developed and maintained by Yodasoft Technologies Pvt. Taken together, these papers constitute an argument that far from fading as India modernises, the problem of discrimination remains a serious one – even at the very top of the human capital hierarchy. Segregation depending on job capability:Caste system determined your social status by your ability of doing a job. By encouraging inter-caste marriages, the feelings arising out of casteism can be minimized as these marriages bring two families of different castes closer to each other. Women‟s exploitation is an age old cultural Casteism leads the members of one caste to exploit the members of other caste for their own vested interest in the name of superiority or inferiority. A community-based system of enforcement regulates caste privileges by means of social ostracism, violence, and economic penalties that find their justification in elements of Hindu religion [Lal 1989; Ambedkar 1936 and 1987].Although strictly speaking a Hindu tradition, castes have emerged in religions that provide no theological justification for practices of exclusion or pollution, such as Islam, Sikkism, and other religions of India, chiefly because low caste Hindus have attempted to escape the confines of their ascriptive identities through religious conversion. Market failure associated with economic discrimination leads to lower economic growth, inequality in income, poverty and inter-group conflict. We can fairly speak of discrimination when two persons with the same education, training, work experience, and hence identical human capital, differing only in personal characteristics that have no implications for productivity, are treated unequally, with the minority group member denied jobs, given lower wages, or unfavourable working conditions and the majority (or higher status) individual favoured in these domains. A caste system stratifies the whole society. Caste system is filled with inequality and injustice. The members of the caste have to face various problems and as a result, a need to provide security on com­munal basis was felt. These continuous conflicts and ten­sions between various segments hinder the development of the nation and growth of nationalism. This results in hindering the technology and industrial efficiency. Caste System and Social Inequality in Nepal By Krishna Prasad Subedi, COEX (11/19/2016) Summary The caste system is a social structure that is determined by birth. The first paper, by Thorat and Attewell, provides the results of a field experiment which found that low caste and Muslim applicants who are equally or better qualified than high caste applicants are significantly less likely to pass through hiring screens among employers in the modern, formal sector in India. gender – women are generally at higher risk of poverty than men as they are less likely to be in paid employment, tend to have lower pensions, are more involved in unpaid caring responsibilities and when they are in work, are frequently paid less even for the same job ; Disclaimer 9. We can feel its impact in different areas: work, social life, family life, etc. There is a reasonable degree of consensus over the legitimacy of this strategy. Birdsall, Nancy and Richard Sabot (1991): ‘Unfair Advantage – Labour Market Discrimination in Developing Countries’, World Bank Studies. The occupational and wage differentials that research documents reflect the accumulated benefits of family connections that enhance the matching process for high status students, while making it harder for the low status but well qualified students to compete. Without intervention, classically untouchables, or dalits, who lie at the very bottom of the social order, find themselves restricted to the most despised occupations and the lowest wages. Dirks, Nicholas (2001): Castes of Mind: Colonialism and the Making of Modern India, Princeton University Press. Discrimination is clearly a particular kind of exclusion and it can take on an active or a passive form. Some of the ill-effects of casteism are as follows: i. Casteism perpetuates the practice of untouchability and becomes an obstacle in providing social equality and justice. The view that inefficiency, and therefore pressure on firms, will self-correct discriminatory behaviour argues in favour of strengthening competitive markets as the solution to this vexing problem. vi. modernises, discrimination remains a problem which, for reasons outlined here, is not The papers are the fruit of a two-year collaboration between researchers at the Indian Institute for Dalit Studies and sociologists supported by Princeton University’s Institute for International and Regional Studies. There is a view that in a competitive market situation, the firms/employers who indulge in discrimination face eroding profits – in theory. In market economies, occupational immobility is the result as restrictions on access to land, labour, capital, credit, education, and other inputs and services necessary for commercial activity provide for differential capacities to participate. This is not to suggest that investments in levelling the playing field are of no value. Thorat, Sukhadeo, Aryama, and Prashant Negi (2005): Reservation and Private Sector, India, Rawat, Delhi. One was expected to follow the path of their ancestors and stick to their hereditary based profession. These investments are a form of reparations – to lower castes, especially those formerly deemed untouchable, or to other backward castes, women and some religious minority groups – in recognition of the denial of equal economic rights from which they have suffered in the past. Two policy directions have emerged. Taken as a whole, they document widespread patterns of discrimination and underlying attitudinal orientations – based on caste and religion – that contribute to inequality in employment and wages in the modern, formal sector of India’s economy. @idsnupdates Eliminate caste discrimination: Caste discrimination is … This paper provides a theoretical introduction to the study of discrimination with particular reference to the caste system. Two policy directions have emerged In the absence of opportunities to display their talents, groups that have been excluded will find it difficult to develop the necessary signals that will make clear what employers are missing by avoiding them. Labour market discrimination can transpire in the domain of hiring, or in wages, or through working conditions, and opportunities for upward mobility. iii. iv. Haan, De Arjan (1997): ‘Poverty and Social Exclusion: A Comparison of Debates on Deprivation’, Poverty Research Unit, Working Paper No 2, University of Sussex, Brighton. Amal El-Sawad Content Guidelines 2. T Economic efficiency is also affected by reducing the job commitment and effort among workers who perceive themselves as victims of discrimination, and by reducing the magnitude of investment in human capital by discriminated groups because the return on their investment is weakened. iii. Given the virtues of increasing economic efficiency and growth, as well as reducing poverty and inequality, there is a compelling interest in diminishing the market discrimination. Caste has long been used to regulate economic life in India [for a thorough historical treatment see Dirks 2001]. Providing value-based education to children from childhood can solve the problem of casteism to some extent. For those who take the risk and succeed become richer than others. Discrimination is clearly a particular kind of exclusion and it can take on an active or a passive form. Under the caste system, which allows casteism to perpetuate, such restrictions placed on marriage forces an individual to marry within his own caste group, which brings about cohesion within the group, thereby increasing casteism. In order to develop appropriate remedies to eliminate caste inequality, we need to understand precisely how caste affects individuals’ economic lives, how the economy interacts with caste values and attitudes, and what behaviour produces persistent inequality and deprivation for groups based on their caste, ethnicity or religion. Yet we should not move so fast in declaring the private sector free of discrimination, nor should we assume that human capital diffentials alone explain the “lack of advancement” that The Economist notes among the lower castes. In 1820, the ratio between the income of the top and bottom 20 percent of the world's population was three to one. ii. Casteism proves to be a threat to social order, stability, peace and harmony, in the society. The occupational and wage differentials that research documents reflect the accumulated benefits of family connections that enhance the matching process for high status students, while making it harder for the low status but well qualified students to compete. EPW By improving agricultural productivity it would have directly alleviated poverty by the hundreds of millions (just like in China did in the 1990s). EPW looks forward to your comments. This issue of economic discrimination has not been central to mainstream social science research in India. Merit and efficiency may not be given importance, if appointments to various positions both in the public and private sectors are based on caste considera­tions. Economic Liberalisation, Work and Democracy: Industrial Decline and Urban Politics in Kolkata – Nandini Gooptu Illiteracy can lead to social evils like child labour, mal-practices, child marriage and untouchability. In general, it is the social minorities who are most often discriminated against. As the Jodhka and Newman paper makes clear, this is firmly opposed by private sector leaders, not only because they prefer to avoid any form of regulation over hiring, but also because they are convinced that there is no problem of caste or religious prejudice in modern India. From this perspective, labour and other markets generally work in a neutral manner and access to job and other markets is therefore determined by merit and efficiency alone. ix. vii. Dalit students bring weaker connections to the task and are far less likely to find jobs in the private sector. Active exclusion through. The feelings of caste were easily carried through the members from rural areas to urban areas through migration. Caste System and Social Inequality in Nepal By Krishna Prasad Subedi, COEX (11/19/2016) Summary The caste system is a social structure that is determined by birth. Jobs regarded as socially degrading, almost by definition, reduce the social status of those who hold them – scavenging being the classic example. This issue of economic discrimination has not been central to mainstream social science research in India. The root cause of gender inequality in Indian society lies in its patriarchy system. Yet we should not move so fast in declaring the private sector free of discrimination, nor should we assume that human capital diffentials alone explain the “lack of advancement” that The Economist notes among the lower castes. Casteism has become an instrument in the hands of political leaders. Moreover, because it is built on a foundation of restriction, the caste system fosters inter-group conflict that is socially harmful and diverts human resources to destructive ends. The current pattern of inter-group inequality closely matches the economic scheme of the caste system. In market economies, occupational immobility is the result as restrictions on access to land, labour, capital, credit, education, and other inputs and services necessary for commercial activity provide for differential capacities to participate. Dalit students who reach the best of India’s universities, but are at a financial disadvantage because they bear the continuing burden of supporting their families, would benefit from additional financial aid so that they can concentrate on their studies just as more advantaged students do. With widespread inequality in opportunities for education resulting from the operation of socio-economic factors education seems to have failed as an effective equalizing factor.However it is not that education has not contributed at all to the process of upward social mobility but the momentum has been slow considering the social fabric of the country. This is far from the model of a perfectly competitive market economy [Birdsall and Sabot 1991]. They cast some doubt on whether the natural operation of the market will be sufficient to correct this inefficiency in labour allocation. Caste and Economic Discrimination: That the Indian educational system has a long way to go to achieve caste, class and regional parity is beyond dispute. The role of caste in labour market matching is particularly critical, since it is in this domain that the most vigorous attempts to redress past inequities have been undertaken, principally through the reservation policy. Sen also differentiates between active exclusion – blocking opportunity through deliberate policy interventions on the part of govern ment or private agents – and passive exclusion, which does not rely on these interventions, but may lead to similarly negative outcomes. Before publishing your articles on this site, please read the following pages: 1. Dirks, Nicholas (2001): Castes of Mind: Colonialism and the Making of Modern India, Princeton University Press. They make use of research techniques pioneered in the US to measure discrimination in quantitative terms and to identify attitudes and beliefs through qualitative means that contribute to discriminatory patterns of hiring on the part of participants in the matching process (employers and job seekers). What these four papers establish, is serious evidence of continued discriminatory barriers in the formal, urban labour market. What, then, can be done? The papers presented here were conceived as tests of the proposition that discrimination is no longer an issue in Indian labour markets, particularly in the formal, private sector. Akerlof, George (1976): ‘The Economics of Caste and of Rat Race and Other Woeful Tales’, Quarterly Journal of Economics, XC, 4, November. Those who regard this as insufficient, argue instead, that an interventionist policy is necessary because self-correction takes too long or is weakened, particularly in societies like India with enormous surplus labour. Yet these papers pose the questions in the context of the most advantaged applicants, who (in theory) face the lowest barriers at entry to favoured occupations since they possess formidable qualifications. India today is caught in the grip of a querulous debate over developing reservation policies for groups and communities suffering from economic exclusion associated with caste, gender and religious identity. Exclusion from the access to markets has series of adverse consequences not only on income distribution but also on economic growth. As the Jodhka and Newman paper makes clear, this is firmly opposed by private sector leaders, not only because they prefer to avoid any form of regulation over hiring, but also because they are convinced that there is no problem of caste or religious prejudice in modern India. Haan, De Arjan (1997): ‘Poverty and Social Exclusion: A Comparison of Debates on Deprivation’, Poverty Research Unit, Working Paper No 2, University of Sussex, Brighton. Casteism is mani­fested in the form of clashes between various castes for higher share in the socio-eco­nomic privileges and power. Communication between rural and urban areas became easy through urbani­zation. Caste and Economie Discrimination: Causes, Consequences and Remedies This paper provides a theoretical introduction to the study of discrimination with particular reference to the caste system. Thus while the policies for general economic empowerment of discriminated groups through human capital investment find favour, policies that guarantee access, particularly to employment, are fraught with disagreement. In such a society, there is every possibility for caste conflicts to occur. Buvinic, Mayra (2005): ‘Social Inclusion in Latin America’ in Mayra Buvinici and Jacqueline Mazza (eds), Social Exclusion and Economic Development, pp 3-32. Caste and Economic Discrimination Admittedly, this does not cover the entire universe of questions that should be raised about discrimination in modern India. Caste or ‘Varna’1 system is the basic foundation of Hindu society where different groups and individual interact with each other in different ways (Bhattachan et.al, 2009). Economic and Political Weekly October 13, 2007 even for highly qualified dalits and Muslims. Legal safeguards and “set asides” or quotas governing access to land, labour, capital markets, pro duct and consumer markets, and social services including education, housing, and healthcare, for these advocates, the only way we are likely to see discrimination abate. Those who regard this as insufficient, argue instead, that an interventionist policy is necessary because self-correction takes too long or is weakened, particularly in societies like India with enormous surplus labour. 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