Caste, local networks and lucrative jobs: Evidence from rural Nepal

Abstract: We study how local connections to persons in influential positions affect access to migrant jobs and government employment. In rural Nepal, it would not be surprising if social status strongly influenced the access to attractive labor market opportunities. This is not the case. Although much of the variation in migration can be attributed to wealth, education and social identity, household networks have a separate impact on external employment. Wellconnected households are more likely to get government jobs and appear to have favorable access to the manpower agencies and informal loans required to finance migration to the Persian Gulf or Malaysia.