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Inequality of Opportunity in Indian Society

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  • Tista Kundu
  • Arnaud Lefranc

Abstract

Recent debates on distributive justice have started to prioritize inequality of opportunities, thatis exclusively generated from circumstance factors beyond individual control. Using data from theNational Sample Survey we estimate inequality of opportunity for India in consumption expenditureand wage earning, on the basis of caste, sex, region and parental backgrounds as our circumstances.Adopting the widely used methods of non-parametric and parametric analysis, we find that even in2011-12, more than one-third of the total wage inequality can be attributed to the differences in theascribed social positions of an individual. Inequality of opportunity in consumption on the otherhand is relatively low. Furthermore, we used the regression tree algorithm to find the hierarchicalorder among the circumstances and construct the opportunity tree for India, that the previousmethods are unable to provide. In the fashion of machine learning, the opportunity tree identifiesparental background as one of the most important circumstance factor behind the underlying unequalopportunity in the country, for either outcomes. But the effect of casteism is prominent as well, thatin interaction with region, affirms a forward caste premium for most part of the country, particularlyfor the regular salaried wage earners.

Suggested Citation

  • Tista Kundu & Arnaud Lefranc, 2020. "Inequality of Opportunity in Indian Society," CSH-IFP Working Papers 0014, Centre de Sciences Humaines, New Delhi, revised May 2020.
  • Handle: RePEc:aed:wpaper:0014
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    Cited by:

    1. Seungwoo Han, 2022. "Identifying the roots of inequality of opportunity in South Korea by application of algorithmic approaches," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-10, December.
    2. Panchanan Das & Sumita Biswas, 2022. "Social Identity, Gender and Unequal Opportunity of Earning in Urban India: 2017–2018 to 2019–2020," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(1), pages 39-57, March.

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    More about this item

    Keywords

    Caste; Inequality of opportunity; Mean Log Deviation; Multiple imputation; Parental background; Regression tree;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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