The caste system, its salient characteristics, and its subtle and more obvious transformations, coupled with its persistence and pervasiveness, have been central to studies of Indian society. This review provides a specific view of caste and its transformations with an emphasis on the socioeconomic or labor market dimension. Such a perspective is particularly crucial as one of the distinctive features of caste is the inheritance of occupations. A major argument of modernization has been the increasing movement away from occupational inheritance. This review traces the limited support for the “Orientalist” view of caste as essentially unchanging and focuses on the fluid nature of caste and its transformation in the economic domain.

This paper empirically analyzes the association between caste and class in India. I find a tentative congruence between castes and classes at the extremes of the caste system and a slight weakening in this association over time. Although Scheduled Castes have low upward mobility, higher castes are not entirely protected from downward mobility.

This chapter discusses intergenerational class mobility, which is the extent to which sons — and even daughters — follow in their father's footsteps. It asks how ‘open’ India is, and whether it is becoming more ‘open’ with greater equality of opportunity as it slowly modernises. The discussion is limited to the patterns of intergenerational mobility of men and women who are actually in paid employment.

Social mobility includes absoulte mobility, that is, raw numbers of people who move up, down, or remain stable; and relative mobility, that is, mobility controlling for structural change. This chapter draws out the importance of both types of mobility. Further, the intriguing pattern for women’s mobility, where women display more stability than men intergenerationally, contrary to research in most of the world, is deconstructed. While we observe an enduring trend, preceding ‘liberalization’, of the expansion of the higher salariat, and a retrenchment in agriculture leading to some amount of net upward mobility in absolute terms, we also observe low levels of social fluidity which provide an indicator of the unequal opportunity structures in Indian society.

The relative and absolute rates of mobility are significant in their own regard, however, it leaves open the question of the ‘processual effects’ of industrialization, or in other words what are the drivers of this mobility. This chapter studies the impact of education on social mobility. The major question posed here is whether education acts as a mediator of mobility or not. Or, are the social origin or inherited characteristics (caste and class) the primary determining factor where the chances of social mobility are concerned? Finally, whether the impact of education varies by community. We find that education mediates the origin-destination relation, with those with higher levels of education able to secure more chances of upward mobility. The critical role of caste and gender is underlined.