Do Caste and Religion Matter in Shaping Economic Inequality?

Abstract

Agricultural sector comprises the biggest workforce in the country. A country like India has historically earned its livelihood and based its economy around agriculture. It is only logical to look at all the possible aspects of the agricultural sector. This two-part study consists of a literature review and analysis of a particular research problem. The literature review finds that Caste and Religion do affect economic inequality among different households. Secondly, we study the status of agricultural land distribution among different castes in India in 2004-05 and 2011-12. If there is growth, has that growth been inclusive? We looked at data from the IHDS survey done in 2004-05 and 2011-12 to determine whether the change is inclusive. We find that the situation of asset ownership has worsened with time. There is a tendency to accumulate resources towards the higher castes. The agricultural land ownership disparity was significant initially and has only increased over the years in rural areas. The Brahmins and the people from forward castes hold much of the agricultural land.