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Development in India pp 13–37Cite as

Caste Networks in the Modern Indian Economy

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Part of the book series: India Studies in Business and Economics ((ISBE))

Abstract

Social networks support diverse economic activities in developing countries, using the information and the social sanctions at their disposal to sustain cooperation and to solve market imperfections. In India, the natural unit around which networks would be organized is the endogamous (sub) caste or jati. Caste networks have, indeed, historically supported, and continue to support economic activity and mobility. While this provides a novel economic explanation for the persistence of caste in modern India, a balanced assessment of the contribution of these networks to growth and the macro economy must also account for the static and dynamic inefficiencies that they generate.

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Authors and Affiliations

  1. Faculty of Economics, University of Cambridge, Cambridge, UK

    Kaivan Munshi

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  1. Kaivan Munshi
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Correspondence to Kaivan Munshi .

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Editors and Affiliations

  1. Director, Indira Gandhi Institute of Development Research, Mumbai, Maharashtra, India

    S. Mahendra Dev

  2. Professor, Indira Gandhi Institute of Development Research, Mumbai, Maharashtra, India

    P.G. Babu

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Munshi, K. (2016). Caste Networks in the Modern Indian Economy. In: Dev, S., Babu, P. (eds) Development in India. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-2541-6_2

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