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Caste, Social Capital and Precarity of Labor Market Intermediaries: The Case of Dalit Labor Contractors in India

Written by Kogod School of Business | November 5, 2025

Not All Precarity Is Equal: The Hidden Cost of Caste in Global Supply Chains

Labor contractors in India’s garment sector don’t all face the same struggles. This research finds that Dalit (formerly “untouchable”) contractors experience much greater precarity than their upper-caste peers—even when doing the same jobs—because they are excluded from the social networks that secure contracts and resources.

How Caste and Social Capital Trap Workers at the Bottom

Dalit contractors are stuck in a cycle of job insecurity and lower pay. They struggle to recruit workers, are excluded from lucrative deals, and lack the financial buffers to survive tough times. Even their leadership is undermined by caste-based dynamics, which destabilize their businesses and block paths to upward mobility—while upper-caste contractors leverage community connections to get better rates and more consistent work.

Implications for Business, Policy, and Research

For global brands, addressing supply chain inequality requires more than wage audits—systemic discrimination keeps marginalized workers trapped at the bottom. Policymakers must recognize that job security programs will fail if they don’t consider identity-based barriers to opportunity. And for researchers, this case shows that occupational precarity is deeply intersectional and context-dependent, rooted in who you are—and who you know—not just what you do.