22 days ago
- Caste and kinship networks dominate social organization in rural Indian villages, determining residence, marriage, occupation, and social obligations.
- The caste system provides informal insurance against economic shocks through kinship networks, but imposes a high 'social tax' that discourages individual accumulation and migration.
- Arranged marriages within jati (sub-caste) are universal, with dowry payments leading to financial burdens, domestic violence, and low female labor participation due to patrilocal norms and control over women's surplus.
- Agricultural production is seasonal and risk-averse, with limited mechanization. Social norms restrict occupational mobility, as people strongly prefer jobs associated with their caste, leading to labor misallocation.
- Public services like education and healthcare suffer from high absenteeism, corruption, and poor outcomes. Government schools have low learning levels, and health workers are often absent.
- Caste solidarity facilitates collusion in labor markets (causing wage rigidity and unemployment) and discrimination in hiring and resource access (e.g., water), hindering economic efficiency.
- Breaking caste and kinship obligations is seen as necessary for modern economic growth, suggesting policies like portable insurance and better weather forecasts to reduce reliance on informal networks.
- Rapid industrialization and urbanization are proposed as long-term solutions, though caste persists in cities through political patronage and collective action.