Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207364 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12538
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Three important features of Indian labor markets enduringly coexist: rent-seeking, occupational immobility, and caste. These facts are puzzling, given theories that predict static, equilibrium social inequality without conflict. Our model explains these facts as an equilibrium outcome. Some people switch caste-associated occupations for an easier source of rents, rather than for productivity. This undermines trust between castes and shuts down occupational mobility, which further encourages rent-seeking due to an inability of workers to sort into occupations. We motivate our contribution with novel stylized facts exploiting a unique survey question on casteism in India, which we show is associated with rent-seeking.
Subjects: 
caste
occupational mobility
rent-seeking
India
labour markets in developing countries
JEL: 
O15
J71
J24
J47
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.