Crossing boundaries: How social hierarchy impedes economic mobility

How important are social hierarchies in explaining durable economic inequality? Using novel data from rural Pakistan on the caste composition of village hamlets and the location of primary schools, we investigate the impact of caste-based hierarchies on human capital accumulation, a key determinant of socio-economic mobility. We find that social stigma greatly discourages school enrollment among low-caste children, with low-caste girls, the most educationally disadvantaged group, being the worst affected. Our results imply that a policy of prioritizing school availability in settlements dominated by low-caste households would be a cost-effective way of increasing overall school enrollment.