Earnings and Education among Ethnic Groups in Rural India

In rural India social and cultural norms are deep rooted in society. Access to productive assets, employment opportunities and consequently incomes are to a large extent influenced by these social factors. Access to education could act as a catalyst to change. Persons acquiring education, even at low levels, could break through some of the social and cultural norms associated with certain occupations. However, access to education and the capacity to leverage using it could differ by caste and religion. In independent India, social policies such as the reservation of seats in higher education and jobs in the public sector were intended to help break some of these barriers to entry for the communities facing centuries of social exclusion and discrimination. The focus of this paper is on the premia on incomes associated with educational investments and how this varies with ethnic groups.