Caste System

In standard economics, individuals are rational actors and economic forces undermine institutions that impose large inefficiencies. The persistence of the caste system is evidence of the need for psychologically more realistic models of decision-ma...

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Main Author: Hoff, Karla
Format: Working Paper
Language:English
en_US
Published: Washington, DC: World Bank 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/452461482847661084/Caste-system
http://hdl.handle.net/10986/25832
id okr-10986-25832
recordtype oai_dc
spelling okr-10986-258322021-06-08T14:42:46Z Caste System Hoff, Karla culture caste discrimination endogamy stereotype threat social identity psychology institutions behavioral economics In standard economics, individuals are rational actors and economic forces undermine institutions that impose large inefficiencies. The persistence of the caste system is evidence of the need for psychologically more realistic models of decision-making in economics. The caste system divides South Asian society into hereditary groups whose lowest ranks are represented as innately polluted. After the historical encounter between colonial powers and South Asia, caste became capable of expressing and systematizing what had been diverse forms of social identity, community, and organization. This paper reviews work that estimates the economic costs of the caste system in particular environments: (1) In North India, discrimination between higher-caste landowners and lower-caste tenants in markets for groundwater for irrigation reduces the tenants' agricultural yields by 45 percent. (2) Making caste identity public in North Indian classrooms reduces the cognitive performance of low-caste boys by 23 percent. (3) Because of lower-caste men's control of working-class occupations, the proportion of lower-caste children enrolled in English-language schools in Mumbai after India opened itself up to the world market grew only one-fourth as quickly for boys as for girls, restricting boys' occupational mobility. Given the benefit of access to caste-based networks, most Indians practice caste endogamy. The caste system is a dramatic example of an institution to which it may pay each individual to conform because others conform. The caste system also illustrates the two-way influence between people and institutions emphasized in psychology: people construct institutions, and institutions shape understandings. Abolition by law of an institution may change neither understandings nor behavior. 2017-01-10T18:18:07Z 2017-01-10T18:18:07Z 2016-12 Working Paper http://documents.worldbank.org/curated/en/452461482847661084/Caste-system http://hdl.handle.net/10986/25832 English en_US Policy Research Working Paper;No. 7929 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research Publications & Research :: Policy Research Working Paper South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic culture
caste
discrimination
endogamy
stereotype threat
social identity
psychology
institutions
behavioral economics
spellingShingle culture
caste
discrimination
endogamy
stereotype threat
social identity
psychology
institutions
behavioral economics
Hoff, Karla
Caste System
geographic_facet South Asia
India
relation Policy Research Working Paper;No. 7929
description In standard economics, individuals are rational actors and economic forces undermine institutions that impose large inefficiencies. The persistence of the caste system is evidence of the need for psychologically more realistic models of decision-making in economics. The caste system divides South Asian society into hereditary groups whose lowest ranks are represented as innately polluted. After the historical encounter between colonial powers and South Asia, caste became capable of expressing and systematizing what had been diverse forms of social identity, community, and organization. This paper reviews work that estimates the economic costs of the caste system in particular environments: (1) In North India, discrimination between higher-caste landowners and lower-caste tenants in markets for groundwater for irrigation reduces the tenants' agricultural yields by 45 percent. (2) Making caste identity public in North Indian classrooms reduces the cognitive performance of low-caste boys by 23 percent. (3) Because of lower-caste men's control of working-class occupations, the proportion of lower-caste children enrolled in English-language schools in Mumbai after India opened itself up to the world market grew only one-fourth as quickly for boys as for girls, restricting boys' occupational mobility. Given the benefit of access to caste-based networks, most Indians practice caste endogamy. The caste system is a dramatic example of an institution to which it may pay each individual to conform because others conform. The caste system also illustrates the two-way influence between people and institutions emphasized in psychology: people construct institutions, and institutions shape understandings. Abolition by law of an institution may change neither understandings nor behavior.
format Working Paper
author Hoff, Karla
author_facet Hoff, Karla
author_sort Hoff, Karla
title Caste System
title_short Caste System
title_full Caste System
title_fullStr Caste System
title_full_unstemmed Caste System
title_sort caste system
publisher Washington, DC: World Bank
publishDate 2017
url http://documents.worldbank.org/curated/en/452461482847661084/Caste-system
http://hdl.handle.net/10986/25832
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