Economic Development and the Decline of Rural and Urban Community-Based Networks

17 Pages Posted: 24 Aug 2005

See all articles by Kaivan D. Munshi

Kaivan D. Munshi

Brown University - Department of Economics

Mark R. Rosenzweig

Yale University - Economic Growth Center; Yale University - Cowles Foundation

Abstract

This paper studies how traditional networks in rural and urban India have responded to economic development. In rural areas, the impact of the Green Revolution on within-network inequality has resulted in defection by the wealthiest members of caste-based social insurance networks. In Bombay, the most able members of the caste-based labour market networks are exiting from the traditional occupations to participate in new occupations in which individual rather than group ability is rewarded. In both cases, the weakest members of the community are left in networks that now have lowered capacity to provide services.

Suggested Citation

Munshi, Kaivan D. and Rosenzweig, Mark Richard, Economic Development and the Decline of Rural and Urban Community-Based Networks. Economics of Transition, Vol. 13, No. 3, pp. 427-443, July 2005. Available at SSRN: https://ssrn.com/abstract=776990

Kaivan D. Munshi (Contact Author)

Brown University - Department of Economics ( email )

64 Waterman Street
Box B
Providence, RI 02912
United States
401-863-9331 (Phone)
401-863-1970 (Fax)

Mark Richard Rosenzweig

Yale University - Economic Growth Center ( email )

Box 208269
New Haven, CT 06520-8269
United States
203-432-3620 (Phone)

Yale University - Cowles Foundation

Box 208281
New Haven, CT 06520-8281
United States

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