Formal institutions, caste network and occupational mobility

Abstract

The paper assesses the effect of formal judiciary operations on occupation mobility in two ways: how it affects inter-generational mobility; and, whether improvements in the legal process can enable individuals to move away from traditional occupations inherent to their caste. In India the caste system promotes norms that support inter-generational persistence of occupation. In the absence of market or state provision of insurance, education and enforcement, people have strong incentives to stick to their community profession. Findings show that in the presence of strong formal networks, a person will move to a job in accordance with skill sets irrespective of caste.

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Keywords

CASTES, OCCUPATIONAL MOBILITY, ENTREPRENEURSHIP, JUDICIAL SYSTEM, INSTITUTIONAL CHANGE, CIVIL LAW, MATHEMATICAL MODELS, CONTRACTS, ACCESS TO JUSTICE, INDIA, SOUTH ASIA,

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