Dalit business owners in India earn 16% less due to their caste, says study
Bengaluru: A study has revealed that Dalit business owners in India earn, on average, 16 percent less than other business owners, including those from other disadvantaged communities. This income gap can be solely attributed to caste, according to the research paper titled ‘It’s not who you know, but who you are: Explaining income gaps of stigmatized-caste business owners in India’, which was published earlier this week in the research journal PLOS One.
The study by researchers from India, the UK, and Australia found that social capital—a measure of "whom you know," often considered beneficial in various situations, including business—did not significantly improve the incomes of Dalit business owners.
The study employed three analytical techniques, all yielding similar results: there is a 15 to 18 percent income gap between Dalit business owners and others, which can be attributed solely to caste and not other factors like whether they live in urban or rural areas, their education, family background, or land ownership, according to Prateek Raj, an assistant professor at the IIM-Bangalore and lead member of the research team, as noted in the Telegraph.
The analysis revealed that business owners from other disadvantaged groups, such as Other Backward Classes, Scheduled Tribes, or Muslims, benefited from social capital, suggesting that those with more social capital had higher income levels. However, for Dalits (Scheduled Castes), social capital had a much smaller impact, amplifying income disparities compared to others with the same levels of social capital.
Hari Bapbuji, co-author of the paper and a professor at the University of Melbourne, noted that this is due to the stigma associated with Dalits, which affects them personally and is reinforced in social interactions.
Moreover, the study found that human capital, measured by the number of years of school or college education, provided similar income benefits to Dalit business owners as it did to other business owners. Thomas Roulet, an associate professor at the University of Cambridge and the study’s third collaborator, explained that this implies having social capital, or a network, is not as effective as having education in countering stigma.
Experts estimate that Dalits constitute between 250 million and 300 million of India’s 1.4 billion population. This research claims to be one of the first to quantify the impact of caste on business income. While the researchers had expected the effect of social capital would limit stigmatisation, the results showcased that it actually makes stigmatisation even more damaging. Raj stated that the stigma faced by Dalits might not always be explicit discrimination but could result from ingrained attitudes or biases, potentially practiced unconsciously.
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UDF leaders see local body poll trends as pointer to 2026 Assembly elections in Kerala
Thiruvananthapuram (PTI): Buoyed by the strong performance of the Congress-led UDF in the local body polls, KPCC president Sunny Joseph said on Saturday that the front's results indicated the people had rejected the LDF government.
According to early trends, the UDF was leading in more grama panchayats, block panchayats, municipalities and corporations than the LDF.
The local body polls were held in two phases in the state earlier this week.
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Speaking to reporters here, Joseph said the people of Kerala had extended their support to the UDF.
"We could expose the LDF government’s anti-people stance and the people understood it. The LDF’s fake propaganda was rejected by the people. The UDF is moving towards a historic victory," he said.
He said a united effort, proper preparations, good candidate selection and hard work had resulted in the Congress and the UDF’s victory in the elections.
Asked about the prospects in the Thiruvananthapuram Corporation, Joseph said the party was studying the matter and would comment later.
LDF convenor T P Ramakrishnan said the results would be closely examined.
According to him, the government had done everything possible for the people.
"Why such a verdict happened will be examined at the micro level. People’s opinion will be considered and further steps will be taken," he said.
He added that decisions would be taken after analysing the results. "If any corrective measures are required, we will initiate them and move forward," he said.
AICC leader K C Venugopal said the results showed that people had begun ousting those who, he alleged, were responsible for the loss of gold at Lord Ayyappa’s temple.
"This trend will continue in the Assembly elections as well. It is an indication that the people are ready to bring down the LDF government," he said.
Venugopal said the UDF had registered victories even in CPI(M) and LDF strongholds.
"I congratulate all UDF workers for their hard work. Congress workers and leaders worked unitedly," he said.
Referring to remarks made by Chief Minister Pinarayi Vijayan against the Congress on polling day, Venugopal said the voters had responded through the verdict.
"I do not know whether the chief minister understands that the people are against him. Otherwise, he does not know the sentiment of the people. The state government cannot move an inch further," he said.
He said the results indicated a strong comeback for the UDF in Kerala.
Asked whether the Sabarimala gold loss issue had affected the LDF in the local polls, Venugopal said the CM and the CPI(M) state secretary did not take the issue seriously.
"We took a strong stand on the matter. The BJP played a foul game in it," he alleged.
On the BJP's role in the local body elections, Venugopal alleged that the party operated with the CPI(M) 's tacit support.
"The CPI(M) supported the central government on issues such as PM-SHRI, labour codes and corruption in national highway construction. The CPI(M) is facing ideological decline, and the state government’s policies are against the party’s own decisions," he said.
Meanwhile, LDF ally Kerala Congress (M) leader Jose K Mani said the party could not win all the wards it had expected in the elections.
He congratulated winners from all parties and said the party would closely examine the losses and identify shortcomings. "Later, we will take corrective measures," he added.
Senior Congress leader and MP Rajmohan Unnithan said the trends in the local body elections indicated that the UDF would return to power in the 2026 Assembly elections.
"We will win 111 seats as in 1977 and return to power in 2026. The anti-government sentiment of the people is reflected in the elections," he said.
Unnithan said the people were disturbed and unhappy with the present government.
"The trend indicates the end of the LDF government," he added.
CPI(M) MLA M M Mani said the people had shown ingratitude towards the LDF despite benefiting from welfare schemes.
"After receiving all welfare schemes and living comfortably, people voted against us due to some temporary sentiments. Is that not ingratitude," he asked.
Mani said no such welfare initiatives had taken place in Kerala earlier.
"People are receiving pensions and have enough to eat. Even after getting all this, they voted against us. This is what can be called ingratitude," he said.
Muslim League state president Panakkad Sayyid Sadiq Ali Shihab Thangal said the results were beyond expectations.
"The outcome points towards the Secretariat in Thiruvananthapuram, indicating that a change of government is imminent. We are going to win the Assembly election," he said.
