Business and labor market flexibility in India: The importance of caste

Saez, Lawrence; Mahmood, Zaad

Abstract

Since the enactment of economic liberalization in India in the early 1990s, variation in investment climate and labor market reforms across sub-national states has been linked to the increasing relevance of business in policy making. This article argues that the influence of business on policy is conditioned by wider political dynamics. We argue that the reform orientation of states correspond to the position of business classes and caste-based groups within the support base of political parties. We show that caste identification plays an important role on the position of political parties towards business liberalization policies. Thus, we conclude that the relative power of business across the states appears to vary due to the relation between business and government, which in turn is structured by the salience of business castes as an electorally relevant group.

Citation

Saez, L., & Mahmood, Z. (2016). Business and labor market flexibility in India: The importance of caste. Business and Politics, 18(2), 171-198. https://doi.org/10.1515/bap-2014-0045

• Journal Article Type: Article
• Acceptance Date: Jan 19, 2016
• Online Publication Date: Jan 20, 2017
• Publication Date: Aug 1, 2016
• Deposit Date: Mar 4, 2016
• Publicly Available Date: Sep 9, 2019
• Journal: Business and Politics
• Electronic ISSN: 1469-3569
• Publisher: Cambridge University Press
• Peer Reviewed: Peer Reviewed
• Volume: 18
• Issue: 2
• Pages: 171-198
• DOI: https://doi.org/10.1515/bap-2014-0045