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Labor market underpinnings of a caste economy: foiling the coase theorem.

From: The American Journal of Economics and Sociology  |  Date: 10/1/1996  |  Author: Scoville, James

Previous modellings by Akerlof and Scoville of a caste based economy, exemplified historically by India - in which occupations are hereditary, compulsory, and endogamous - are reviewed and contrasted. Coase/North arguments are advanced about the possible bases for labor market segmentation which would render such a caste-type system immune to erosion by labor market competition. Historical and contemporary evidence is presented to support these arguments.

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