June 2023
India’s villages have historically been segregated by caste. Marginalized groups have lived together at the outskirts, excluded from village social circles and amenities.
We set out to examine whether cities were different. Does the market bridge social divides, or do rural inequities get reproduced?
We used administrative data on 1.5 million urban and rural neighborhoods to calculate the Dissimilarity Index, a standard measure of segregation. The Dissimilarity Index describes how evenly groups are distributed across the neighborhoods of a city. It tells us what fraction of marginalized group members would have to move in order to achieve an equal distribution across neighborhoods. High values indicate high levels of segregation.
We find that urban areas are just as segregated as rural areas for SCs, and even more so for Muslims. India's Muslims and Scheduled Castes are about as segregated as Black people in the United States today.
Unequal neighborhoods can entrench inequality. Young people living in poor neighborhoods have worse opportunities.
We looked at child school completion in neighborhoods where marginalized groups live. In the average urban neighborhood with a low Muslim and SC share, young people on average get 9.2 years of schooling. In the same city, in a neighborhood with a 100% SC share, the average person gets 1.6 fewer years of education.
Children in Muslim neighborhoods fare even worse, getting 2.2 fewer years of schooling than children in non-marginalized neighborhoods.
This isn’t just about social groups, it’s about neighborhoods. In neighborhoods that are majority SC and majority Muslim, all social groups are doing worse in terms of education, not just SCs and Muslims.
The graph to the right compares outcomes (by social group) between non-marginalized neighborhoods and neighborhoods that are majority Muslim or majority SC.
For more results and context, please download the full paper .