Bridging Divides: How Caste and Class Shape Education in India

In India, the interplay between caste and class remains a defining factor in shaping social and economic outcomes. A recent research study conducted by Prof. Bheemeshwar Reddy A, Prof. Dushyant Kumar, and Prakash Kumar Shukla from the Department of Economics & Finance, BITS Pilani-Hyderabad Campus, delves into how these two dimensions jointly influence investments in children's human capital, a term that refers to the skills, knowledge, and education acquired by individuals to increase their productivity and potential.

Situated within the Indian socio-economic context, this study investigates whether caste-based disparities in human capital investments persist even after controlling for economic class. While prior research has extensively examined inequalities in access to education and outcomes such as attainment and learning levels across caste groups, this study uniquely focuses on household educational investment—the critical conduit for achieving educational success. It highlights how caste identity remains a pivotal factor in shaping children's opportunities, even among households with comparable economic standing.

The study specifically focuses on four major caste groups in India: Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), and Others (upper castes). These groups represent distinct socio-economic realities shaped by historical and institutional factors, and the study aims to understand how these categorizations intersect with economic class to influence educational investments.

The research utilizes data from nationally representative surveys, specifically the Household Social Consumption: Education modules from 2007–08 and 2017–18 conducted by the National Sample Survey (NSS). These datasets offer detailed information on children’s age, sex, academic grade, and annual educational expenditures per child. The analysis also accounts for key factors such as parental education, geographic location, and household monthly consumption expenditure to ensure robust findings.

Statistical methods such as multivariate regression analysis, decomposition and matching techniques were used to isolate the effects of caste and class on educational expenditure. This rigorous approach ensured that observed disparities were not confounded by overlapping socio-economic variables.

Key statistical findings include:

• Educational expenditure by disadvantaged caste groups (Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC)) is significantly lower compared to Others. In 2007, Others spent 247% more on each school-going child than SC/ST and 156% more than OBC. These gaps persisted in 2017, with Others spending 252% more than SC/ST and 125% more than OBC.

• The majority of disadvantaged caste students are enrolled in low-fee private schools or public schools, while Others have higher representation in high-fee private and English-medium schools.

• Expenditure on children studying in private schools, particularly English-medium schools, is considerably higher than for those in public schools.

• Decomposition analysis reveals that income disparities between caste groups are the primary factor driving differences in educational expenditure.

One of the central findings of the study is that, after accounting for income-based educational choices—such as enrolling a child in public or private schools, opting for English-medium instruction, or providing private coaching—the income disparity between disadvantaged caste groups and Others explains the majority of the difference in educational expenditure. This highlights the significant role of the caste-class overlap in shaping educational choices and human capital investment.

The research also reveals that, despite some convergence in educational attainment across caste groups, inequalities in human capital investment remain significant and continue to perpetuate social stratification. For instance, SC and ST children are more likely to attend poorly resourced government schools, while children from Other caste groups are overrepresented in premium private schools. The study thus suggests that an over-reliance on ‘low-fee’ private schools will likely exacerbate, rather than bridge, educational inequalities between caste groups. Instead, sustained efforts from both state and union governments are required to improve learning outcomes in public schools

Additionally, the study also highlights that limited educational investments among disadvantaged caste groups perpetuate intergenerational inequalities, obstructing social and economic mobility. Addressing income disparities and ensuring equitable access to quality education are essential steps toward reducing caste-based educational and socioeconomic gaps.

Key policy suggestions include:

• Increase in financial aid for SC and ST students.

• Improved quality of public schools, particularly in marginalized areas.

• Teacher sensitization programs to address implicit biases.

• Stronger anti-discrimination laws and enforcement mechanisms in educational institutions.

• Targeted income and employment opportunities for households from disadvantaged caste-groups.

In conclusion, this research underscores the persistent role of caste in shaping children's educational and socioeconomic outcomes, despite India’s economic progress. The disparities in human capital investment between caste groups continue to reinforce social stratification. Bridging this gap will require targeted and sustained efforts at both the policy and societal levels, including equitable funding for public schools and a re-evaluation of the reliance on low-fee private schools. Only through such comprehensive measures can India move towards a more equitable and inclusive future in education.