Gautam Nair (HKS), "Group-targeted wealth transfers reduce inequality and intergroup conflict but trigger policy backlash"
Persistent group disparities are a global policy challenge. Large, targeted wealth transfers—such as those proposed in reparations programs–may reduce inequality, but their social and political consequences remain poorly understood. We examine a program in Telangana, India, which provided capital grants of 1 million rupees—five times the median annual household income—to households from historically disadvantaged Dalit castes. Using original survey data from 3,184 households and a natural experiment comparing villages along the pilot constituency’s boundary, we assess impacts two years after implementation. The program increased Dalit asset ownership and reduced intercaste economic inequality. Contrary to expectations of status threat and social backlash, both Dalits and non-Dalits reported lower inter-caste conflict. However, non-Dalit support for complementary redistribution policies, such as affirmative action, declined, indicating policy backlash. These results show that targeted wealth transfers can mitigate durable inequalities and social tensions but may erode broader political support for redistribution.
LOCATION:Littauer Center, room M-16 STATUS:CONFIRMED DTSTART:20260305T213000Z DTEND:20260305T224500Z END:VEVENT END:VCALENDAR