The legacy of past prejudices and deprivation perpetuates subordination of some groups. A low caste individual is more likely to submit to the authority of the high caste if he or she believes that others will do so, too. A high caste person is more likely to exercise that authority if he or she believes that the low-caste will submit. Thus, a shared system of beliefs stabilises expectations, and contributes to the reproduction of poverty over time.

Two policy insights seem important. One is that affirmative action should not be limited to enhancing the endowments or assets of the STs, SCs and other disadvantaged groups but must also address the issue of lower income gains. Related to the latter is the insight that identity has a potentially important role in perpetuating deprivation. Salience of caste and tribal affiliations together with mistrust of the reward system — if overlooked —could undermine the benefits of affirmative action.

The piece is co-authored with Vani S. Kulkarni. Gaiha is professor of public policy, University of Delhi; Kulkarni is research fellow, Harvard Centre for Population and Development Studies