Relational Inequality and Economic Outcomes: A Consideration of the Indian Experience

ABSTRACT

The study of inequality by economists has largely focussed on distributive inequalities of various kinds. The focus on different dimensions of distributive inequality in access and outcomes is welcome. However, it is also important to consider relational inequalities and power imbalances, which economists typically consider to be the domain of sociology, anthropology and related disciplines. Many economic processes cannot be understood without analysing the underlying relational inequalities, which can reveal much about economic processes and associated policies. Some examples from the Indian experience, specifically relating to power imbalances created by gender and caste differentiation, indicate how this can play out. These are not simply ‘traditional social forms’ that are in opposition to or contradictory with capitalist accumulation. Rather, they are crucial in enabling segmented labour markets and enabling extractivist patterns of accumulation, on which recent Indian economic growth has been dependent.

KEYWORDS:

• Inequality
• labour market segmentation
• economic development

JEL CODES:

• J42
• J46
• J71
• O11
• O17
• Z13

Acknowledgements

I am grateful to the Wenner-Gren Foundation for involving me in a fruitful interaction between economists and anthropologists, and to Theresa Ghilarducci, Richard McGahey and Gustav Peebles for insightful comments on an earlier draft, as well as to Steven Pressman for his patience as an Editor.

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Notes

1 Indeed, this is why it has been noted that much of women’s work participation in India is of the ‘distress’ variety, engaged in when the household is very poor or when there is a natural calamity, economic shock or other decline in household income (Himanshu 2011).

2 For example, in 2011-12, the total women’s work participation rate, including all of these activities, was as high as 86.2 per cent, compared to 79.8 per cent for men.

3 Another NSS survey in 2012 found that in rural areas, the average trip to the water source took 20 min, with an additional waiting time of 15 min at the water source, and that several trips were required in order to meet the water needs for household consumption. In urban areas the time for travel to the source was 15 min and the time spent waiting per trip was 16 min. Similarly, significant time was spent by women on collecting fuelwood and fodder for animals.

4 Despite this, a significant majority of such surveyed women said they would be willing to accept paid work, thereby showing the desperation to take on a double burden of work because of low family incomes.