Inequality in India: Life Chances and Caste Matters
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Inequality in India: Life Chances and Caste Matters Omkar Joshi1 Abstract: The question of inequality, its determinants and the consequences of inequality has been one of the central areas of research in developmental economics and sociology. There are hardly any sociological studies looking at the question of income inequality within the developing country context and those who study this question in a developing country context, study it from the macro perspective of global inequality and world systems approach. This paper is a contribution in the area of inequality in a developing country context. Using a large-scale nationally representative household survey- India Human Development Survey (IHDS)- for 2004-05 and 2011-12, I look at the extent of inequality with respect to caste in India. I find that over a period, inequality has risen marginally. However, between-caste inequality is going down and within-caste inequality is rising. Keywords: Inequality, Caste, India 1 Doctoral Student, Department of Sociology, University of Maryland, College Park. Email: [email protected]. I thank Prof Andres Villarreal, Prof Wei-hsin Yu for their valuable feedback. This paper has also benefited from the useful discussions that I had with Prof Reeve Vanneman and Prof Sonalde Desai. 1 Inequality in India: Life Chances and Caste Matters Omkar Joshi 1. Introduction The question of inequality, its determinants and the consequences of inequality has been one of the central areas of research in developmental economics and sociology. Although a large body of literature theorizes and reviews various type of disparities viz. disparities in health, education, economic inequality as reflected in disparities of income has received a good deal of attention in the literature, early on from economics and lately in sociology as well. Within economics, the question of inequality has been studied in the context of economic growth. After Kuznets’s (1955) seminal paper on the relationship between economic growth and inequality, many studies have been carried out to empirically test the so called inverted U- hypothesis, which simply put, states that inequality first increases with the growth and then declines subsequently (Williamson 1985; Lindert 1986; Anand and Kanbur 1993; Deninger and Squire 1996). However, most of these studies have found a mixed evidence in support of Kuznets hypothesis. Despite this inconclusive evidence, the interest in analyzing inequality continues to grow. Partly this is because, as Ravallion (2014) shows, the within- country inequality has been growing for the developing countries in last two decades. Therefore, understanding the mechanisms driving the inequality has become an important tool to understand and guide the development effort. In the sociological literature, the question of income inequality had received less attention earlier. Morris and Western (1999) remarked that ‘sociologists had been strangely and remarkably silent’ on the subject of income inequality even though stratification and inequality were among the few undisputed core areas in the field of sociology. In recent decades, though, research interest in income inequality has increased (McCall and Percheski 2010). However, this increased attention towards the question of income inequality is still largely about studying income inequality within the USA and European countries. When one tries to find the sociological analyses of income inequality in the low-income and developing countries, the silence of sociologists becomes almost deafening (Guidetti and Rehbein 2014). There are hardly any sociological studies looking at the question of income inequality within the developing country context and those who study this question in a developing country context, study it from the macro perspective of global inequality and world systems approach. Given the fact that the developing countries face the dual and simultaneous challenge of pursuing high economic growth while trying to make that growth inclusive and equitable, studying income inequality within a developing country context becomes crucial. Additionally, the problem of inequality is compounded for a developing country due to prevailing regional imbalances and strong presence of stratification systems of gender, race, 2 and other group characteristics. Such stratification systems may then become the basis for perpetuating already present and growing disparities between groups. This paper is a contribution in the area of inequality in a developing country context. I look at the question about the extent of income inequality India. I then look at what has happened to inequality between and within different caste groups in India using a large nationally representative data set from India Human Development Survey (IHDS).2 Caste in India remains one of the major axis of stratification and analyzing income inequality for different caste groups can have important theoretical and practical implications. The remaining paper is organized as follows: the second section lays down the theoretical framework for studying income inequality; the third section gives a brief description of caste system in India and drivers of inequality; the subsequent section talk about the research question; I then discuss the data and methodology in the fifth section; sixth section presents the results and discussion; the final section then gives the discussion and conclusion. 2. Theoretical Approaches to Inequality There is a historical legacy in the sociological literature to study inequality. Primarily, three sociological approaches to inequality can be called upon to throw light at the origin and nature of inequality in society. First is the well- known Marxian structural framework analysis based on the ‘conflict theory’ of classes. Very briefly, the main argument of the Marxist school is that, the different social groups (read classes) have unequal access to resources. This unequal distribution of resources is the reason behind conflict and opposition between those who have control over the capital (bourgeoisie) and those who can only sell their labour (proletariat). Thus, social structure and division of labour became the two pillars of Marxian thought which can be utilized to look at why and how inequality originates. Max Weber critiqued and furthered this structural school of thought by adding the nuances of ‘status’. He argued that social structure is a complex multidimensional phenomenon. There is a class of people in the society which are neither capitalists nor proletariat. Weber did not reject Marx’s ideas on class analysis, but expanded them. He put forth that the class position is not determined just on the basis of relation to means of production. There are other factors like ‘status’ and ‘power’ which affect class relations and positions. Moreover, Weber linked the concept of status with ‘life chances’ suggesting that status is not entirely achieved, is also influenced by the ascribed characteristics such as race, gender. The opportunities of an individual are pre-conditioned by his ascriptive characteristics which partly, he inherits from his parents, and partly, because due to prevalent external socio- economic situations. Thus, the Weberian approach hints at the role played by one’s ascriptive characteristics in determining his/her life chances (Breen 2001). Functionalism is another dominant school of thought in sociological literature, courtesy Durkheim, and Parsons. This school regards inequality to be necessary for maintaining the 2 I also conduct the analysis using consumption measures of inequality for robustness check. 3 social order and integrity. Davis and Moore (1945) explain that, “Social inequality is….an unconsciously evolved device by which societies ensure that the most important positions are conscientiously filled by the most qualified persons”. So, inequality according to functionalists is not only inevitable but it is beneficial, too. All these above classical schools take more or less a structural view of inequality. Arguing against these structuralist traditions, the ‘Modernization Theory’ regards that as societies develop socioeconomic achievements become less tied to social background and other ascribed characteristics (Blau and Duncan 1967; DiPrete and Grusky 1990). Industrialization and post-industrialization processes in the society lead to decline of the community and family functions and give more emphasis to individualism. Education becomes an important vehicle to achieve higher rank in the society. Progressively societies become urbanized. Government policies become welfare-oriented trying to correct the inequities in access of resources and promoting investment in human capital (Beller and Hout 2006; Paterson and Iannelli 2007). Thus, modernization theory propounds that the above-mentioned processes act in such a way as to counter the reproduction of socio- economic inequalities. Thus, mainly one can consider two theoretical propositions regarding inequality. The Weberian line of thought uses ascribed characteristics such as race, gender etc. to explain the persistence and growth of inequalities. In the Weberian world, accident of birth matters more for an individual and it decides his/her life chances. Despite the mitigating factors such as education, the accumulated disadvantage of the gender or race or such other group characteristic trumps. For example, a person who is born in a poor black family in United States will have a very different set of constraints over his life-course as far