Caste Comparisons in India: Evidence From Subjective Well-Being Data

Abstract

This paper evaluates how caste influences economic comparisons in India. Using happiness data from an original panel survey, we find that both within-caste comparisons and between-caste comparisons reduce well-being. Between-caste comparisons reduce well-being three times more than within-caste comparisons. In absolute terms, an increase in rival caste expenditures affects well-being as much as primary expenditure. These findings highlight the strong influence that comparisons between rival castes have on well-being. Yet this comparison scheme turns out to be asymmetrical: only low-caste individuals are affected by the economic successes of their rivals, whereas only higher-caste individuals compete with their fellows.