Using a unique household panel data set for rural India covering the years 1993/1994 and 2004/2005 we test a key theoretical assertion of caste and its effects, namely that marginalised social groups fare worse in terms of income levels when resident in villages dominated by upper castes. We...

Economists have focused on job search and supply-side explanations for network effects in labour transactions. This paper develops and tests an alternative explanation for the high prevalence of network-based labour market entry in developing countries. In our theoretical framework, employers...