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Economic development and the decline of rural and urban community‐based networks*
Authors:Kaivan Munshi  Mark Rosenzweig
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.
Keywords:caste  networks  consumption smoothing  education  I21  J62  O12  Z13
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