Caste, Class and Stratification
This paper examines the nature and persistence of caste-based economic stratification in modern India. While the link between caste and hereditary occupation has weakened with economic modernization, caste remains a powerful axis of economic disparity. Using data from national surveys and censuses, we document significant and persistent gaps between broad caste groups—Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), and Upper Castes—across key indicators such as education, occupation, income, and health. We analyze India's unique affirmative action policy ("reservation") and assess the debate on whether class has superseded caste as the primary marker of disadvantage. Our findings show that caste-based gaps persist even within economic classes. The paper also explores the intersection of caste with gender and religion, and investigates the mechanisms of social reproduction, specifically endogamy and the illegal but persistent practice of untouchability, which has tangible negative consequences for early childhood development. We conclude that caste, while transformed, continues to mediate economic outcomes and life chances in a globalizing India, presenting a complex challenge for policy aimed at achieving substantive equality.
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Copy CitationAshwini Deshpande, The Economics of Race and Stratification (University of Chicago Press, 2026), chap. 5, https://www.nber.org/books-and-chapters/economics-race-and-stratification/caste-class-and-stratification.Download Citation
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