Fractal inequality in rural India : class, caste and jati in Bihar

That inequality varies within and between groups is well understood. We explore how inequality can also be "fractal," salient not only between sub-groups of groups but also between sub-groups of sub-groups. We demonstrate this, as a proof of concept using a limited sample, in the case of Bihar one of India’s poorest states where caste has been a persistent driver of inequality. Caste is generally analysed with government-defined "broad" categories, such as Scheduled Caste (SC). In everyday life, however, caste is experienced as "jati", a local system of stratification. We explore expenditure inequality at the jati level. Inequality decompositions show much more variation between jatis than between broad-caste categories. We find that even within generally disadvantaged broad-caste categories some jatis are significantly worse off than others and that inequality is largely driven by inequality "within" jatis. We show that this has implications for the implementation of large-scale poverty alleviation programs.