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Institutional Stigma on Dalit Business Owners
Context:
- According to the 2023 World Inequality Lab report, the top 1% of Indians received 22.6% of national income in 2022, up from 11.5% in 1951.
- Meanwhile, the bottom 50% saw their share drop from 20.6% to 15%, and the middle 40% declined from 42.8% to 27.3%.
Impact of Institutional Stigma on Dalit Business Owners’ Earning Capacity:
- Economic Disparities: Social stigma significantly reduces the income levels of Dalit business owners compared to other marginalised groups, limiting their economic opportunities.
- Income Inequality Trends: Reports like “Income and Wealth Inequality in India” show a growing income disparity, with the top 1% of Indians increasing their share of national income, while the bottom 50% and middle 40% experience declines.
- Role of Stigma: Research by Raj P., Roulet T.J., and Bapuji H. highlights how stigma exacerbates economic challenges for Dalits, restricting access to resources and opportunities.
Institutionalised Stigma:
- Definition and Effects: Institutional stigma, tied to demographic group membership, perpetuates economic disadvantages for Dalit business owners through restricted access to resources and opportunities, reflecting broader societal power dynamics.
Defining Capitals:
- Social Capital: Dalits face challenges in leveraging social capital due to out-group prejudice, particularly in bridging social capital, which involves connections beyond their immediate community.
- Human Capital: While education and professional skills (human capital) are important, they alone cannot overcome the income disadvantages caused by institutional stigma.
Methodology:
- Data Analysis: Using data from the 2011 India Human Development Survey (IHDS), the study employs Ordinary Least Squares (OLS) regression models to analyse income disparities among business-owning households, focusing on the impact of social and human capital.
Stigma and Income:
- Income Disparities: Dalit business owners earn less due to institutional stigma, which negatively correlates with business income and limits the effectiveness of social and human capital.
- Limitations of Human Capital: The study finds that human capital is insufficient to mitigate income disadvantages caused by stigma, highlighting the need for tailored policies to address systemic inequalities.
Study Limitations:
- Coarse Indicator of Social Capital: The study acknowledges limitations in measuring social capital, but still significantly contributes to understanding income inequality among stigmatised groups.
“Caste in Everyday Life” – Key Insights:
- Everyday Caste Dynamics: The book ‘Caste in Everyday Life: Experience and Affect in Indian Society’ explores how caste identities are reproduced in daily interactions, shaping emotions, relationships, and social imaginaries in intimate spheres such as family, friendships, and workplaces.
- Intersectionality: Caste intersects with other social identities such as gender, class, and religion, influencing people’s lives beyond formal political and institutional settings.
- Affective Dimension of Caste: The book emphasises that caste is deeply internalised, affecting the most intimate aspects of people’s lives and subjectivities, highlighting its ongoing relevance in contemporary India.
- Brahmin Privilege and Gender Dynamics: The book uniquely explores dominant caste perspectives, including Brahmins acknowledging their caste privilege, and addresses gender dynamics within cross-caste relationships, offering a broad understanding of caste in everyday life.
