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The Economics of Dravidian Model- Equity and Social Justice

This is a presentation on The Economics of Dravidian Model. It provides information on how this model has helped people of Tamil Nadu to achieve greater GDP Growth, better social justice and equity.

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The Economics of Dravidian Model: Justice and Equity for All Presentation by Dr.K.Prabhakar, Professor (Rtd) 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 1
Introduction A Proven Model of Inclusive Growth with Social Justice The Central Conclusion: The Dravidian Model has successfully balanced high economic growth with a deep commitment to social justice. A New Paradigm: Unlike models that prioritize growth at the expense of equity, Tamil Nadu demonstrates that the two can be achieved simultaneously. This presentation distils the 15 key successes of this model, as empirically validated using advanced statistical tools. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 2
Economic Growth (State GDP) Tamil Nadu's Economic Growth (2023-24) Growth Rate: 9.69% (highest among large states), vs. India’s 6.5%. Sector Contribution to GSVA: Services: 53.63% Manufacturing: 33.37% Agriculture: 13% 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 3
Different Schemes and Budgetary Allocation Program/Scheme Budget Allocation (₹ Crore) Details Kalaignar Magalir Urimai Thittam 13,807 Monthly ₹1,000 assistance to 1.15 crore women, totalling ₹12,720 crore annually. Fare-Free Bus Travel for Women 3,600 Subsidy for women, saving ₹888/month on average, fifty lakh daily users. Working Women’s Hostels 77 Ten new 'Thozhi' hostels, thirteen already functioning. Children Who Lost Both Parents - ₹2,000 monthly stipend for education until age 18, ~50,000 families. Urban Women’s Safety 50 Focus on secure spaces and infrastructure. Women Entrepreneurs Initiative 225 Skill development and loans up to ₹10 lakh with 20% subsidy. ‘Anbucholai’ Old Age Homes 10 Twenty-five centres in ten cities for senior citizens’ well-being. Moovalur Ramamirtham Ammaiyar Scheme 420 ₹1,000 monthly for 4.06 lakh girls for higher education. CM Breakfast Scheme Extension 600 Extended to three lakh additional students. Government Schools Infrastructure 1,000 Improving infrastructure in government schools. Kalaignar Kanavu Illam Housing 3,500 Construction of one lakh houses, total 8 lakh by 2030. Health and Family Welfare 21,906 Overall allocation for health services, including cervical cancer vaccination (₹40 crore). Rural Development and Panchayat Raj 29,465 Includes MGNREGS and rural infrastructure development, pending ₹3,796 crore from Centre. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 4
How social toxicity manifests for SC/ST in India Life Stage SC/ST Female Mortality Risk Factor Magnitude vs General Population Infancy Vaccine-preventable diseases 2.3× higher Reproductive Age Pregnancy-related sepsis 1.7× higher Adulthood Chronic kidney disease (from dehydration) 3.1× higher Elderly Early-onset dementia (nutritional deficits) 2.8× higher 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 5
Methodology Tamil Nadu's Dravidian Model: Socio-Economic Impact Study Focus: Evaluates reservation policies on income distribution, employment, & social equity (FY 2020-21 to FY 2024-25). Data Sources: RBI, Tamil Nadu Economic Survey 2024-25, NFHS-5, World Bank reports (No primary data collection). Key Economic Metrics: GSDP: ₹27.22T (FY 2023-24) → Projected ₹31.55T (FY 2024-25) (16% growth) Per Capita Income: ₹315,220 (FY 2023-24) (1.71x national avg.) Implications: Strong investment potential & diversified economic base (agriculture, manufacturing, services). Caste-based income distribution modeling enhances policy assessment. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 6
Labor Force Participation Rate Age Group Participation Rate 2021 Projected Participation Rate 2025 Remarks Prime Working Age (25-44) Highest 80.5% Highest participation rates observed Youth (15-24) 32.5% 34.5% Lowest participation, steady increase Older Workers (60+) Lower 30% Consistent growth, productively employed Trend Analysis Gradual increase Improvement Broad-based improvement across age groups Caste Group LFPR 2021 Projected LFPR 2025 Remarks ST (Scheduled Tribes) 52% 54% Highest LFPR OBC (Other Backward Classes) 51.5% 53.5% Strong participation rates SC (Scheduled Castes) 48.5% 50.5% Steady growth Others 47% 49% Lowest participation rates Disparity Analysis Gap stable 5 percentage points Gap between highest and lowest remains stable 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 7
Lowest Unemployment Rates 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 8
6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 9
Comparison with Gujarat Indicator Tamil Nadu (Urban) Tamil Nadu (Rural) Gujarat (Urban) Gujarat (Rural) Literacy Rate Higher (above 90%) Lower (around 75- 80%) Higher (above 85%) Lower (around 70- 75%) Poverty Rate Lower due to better job opportunities Higher, but reduced significantly Lower due to industrial growth Higher, with slower reduction Healthcare Access Strong public and private healthcare Public healthcare available but fewer private hospitals Private healthcare dominant Limited access to quality healthcare Employment Opportunities Diverse industries, IT, manufacturing Agriculture, small-scale industries Business, trade, manufacturing Agriculture, handicrafts Infrastructure Well-developed roads, transport, electricity Basic infrastructure, improving Strong urban infrastructure Rural infrastructure still developing 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 10
Education outcomes TN/UP Aspect Tamil Nadu Uttar Pradesh Mid-Day Meals Implemented since 1925, strong impact on outcomes Implemented, but with reported quality issues Free Breakfast Chief Minister’s Scheme since 2022, expanded 2024 No statewide scheme Free Transport Free bus passes for students, high accessibility No statewide scheme for school students Class 12 Pass Rate (2024) 94.56% (State Board), 98.48% (CBSE 2025) 82.6% Dropout Rate (Secondary) 0.5% 31% 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 11
Comparison with UP Social Indicator Tamil Nadu Uttar Pradesh Literacy Rate 81.1% 67.7% Infant Mortality Rate (per 1,000 live births) 15 41 Poverty Rate ( Base year 2011-12) 9.2% 31.9% Sex Ratio (Females per 1,000 males) 993 912 Public Health Infrastructure/Public Distribution System Strong, near universal coverage Comparatively weaker Economic Growth Rate 9.63% per annum 6.5% per annum 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 12
Economic Theory of Dravidian Model Aspect Barrier-Targeted Investment Universal Basic Income (UBI) Focus Addresses specific barriers faced by different caste groups Provides uniform financial support to all, regardless of barriers Equity High, as it targets marginalized groups with tailored support Moderate, may not address specific caste- based inequalities Administrative Complexity High, requires detailed data (e.g., caste surveys) Low, simpler to implement with uniform application Risk of Stigmatization High, may reinforce caste identities Low, no specific targeting reduces stigma Effectiveness in India Mixed, effective in public sectors but limited in private/informal Potential for broad coverage, but may miss specific needs Examples Affirmative action, SC scholarships, Telangana caste survey Hypothetical UBI proposals in India 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 13
Income Distribution social group wise data Income Distribution of SC, ST, OBC, and Other Classes in Tamil Nadu, FY 2025-26 (Nominal Estimates) Note: Percentages are estimated based on socio-economic data and reservation impacts (Government of Tamil Nadu, 2025, p. 38; IIPS, 2021; AISHE 2019-20). Income Quintile Income Range (₹) SC (%) ST (%) OBC (%) Others (%) Lowest 20% Up to 100,000 30 2 65 3 Lower-Middle 20% 100,001– 180,000 25 1 70 4 Middle 20% 180,001– 250,000 20 1 75 4 Upper-Middle 20% 250,001– 350,000 15 0.5 80 4.5 Top 20% Above 350,000 10 0.5 82 7.5 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 14
Propensity Score Matching… 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 15 •Largest Pre-Matching Imbalance: Income saw the biggest absolute reduction in •Standardized Mean Difference (SMD) after matching. •Key Result: PSM successfully brought all covariates below 0.1 SMD threshold (green dashed line). •Before Matching: Income gap (Treated: 120,000 INR Control: 90,000 INR), SMD = 0.4. •After Matching: Gap reduced (Treated: 115,000 INR Control: 113,500 INR), SMD = 0.07. •High p-value (0.8): Indicates no significant residual difference → Successful balance achieved.
Propensity Score Matching… Education & Caste Balance in Matching Education: ◦ Before matching: Treated: 11.8 years Control: 9.5 years (SMD = 0.35) ◦ After matching: Treated: 11.5 years Control: 11.4 years (SMD = 0.06, p = 0.83) → No significant difference Caste (SC/ST Proportion): Before matching: Treated: 0.35 Control: 0.2 (SMD = 0.3) After matching: Treated: 0.33 Control: 0.32 (SMD = 0.05, p = 0.87) → Excellent balance achieved 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 16
Propensity Score Matching Linguistic & Urban Balance in Matching Tamil Speakers: ◦ Before matching: Treated: 75% Control: 60% (SMD = 0.25) ◦ After matching: Treated: 73% Control: 72% (SMD = 0.04, p = 0.9) → Near-perfect balance Urban Proportion: Before matching: Treated: 50% Control: 30% (SMD = 0.32) After matching: Treated: 48% Control: 46% (SMD = 0.08, p = 0.76) → No significant differenc 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 17
Propensity Score Matching All five Important Dimensions have shown significant improvement across these dimensions 1. Income 2.Education 3.Caste 4.Liguistic Diversity 5. Urban and Rural. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 18
Covariate Balance made significant improvements across important matrices 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 19
Benefits across society Aspect Observation Impact Female Participation Significant rise in female LFPR Tamil Nadu's policies supporting women's economic participation Inclusive Growth Consistent improvement across all caste groups Economic opportunities becoming more accessible across social categories Aging Workforce Engagement Steady increase in LFPR for the 60+ age group Improving conditions for older workers to remain economically active Youth Integration 15-24 age group has the lowest participation rates among working- age groups Steady increase suggests improving pathways for youth to enter the workforce Policy Effectiveness Tamil Nadu's comprehensive approach to social welfare Contributing to broader economic participation 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 20
Hypothesis testing and Results Hypothesis Key Variables Estimate P-value Odds Ratio Interpretation H1: Subsidies boost LFPR for ST women Subsidy’s: Female 0.18 0.01* 1.20 Supports Ha: Subsidies significantly increase labor force participation for ST women (~1% of population). ATET (0.06) indicates a 6% LFPR increase. Subsidy: SC 0.08 0.38 1.08 Non-significant effect suggests weaker impact for SC in Q1-Q2. Subsidy’s 0.15 0.06 1.16 Marginally significant effect for ST overall. H2: Women's LFPR gains exceed men's post- subsidy Gender: Time: Subsidy 0.12 0.02* - Supports Ha: Women's LFPR (43%) gains exceed men's (59%) post-subsidy. Gender: Subsidy 0.10 0.05* - Reinforces female advantage in subsidy response. H3: ST gain more LFPR than other groups ST: Subsidy 0.17 0.02* 1.19 Supports Ha: ST gain more in LFPR with marginal effect of 0.04. SC: Subsidy 0.13 0.07 1.14 Marginally significant, suggesting partial support for SC groups. H4: 30-59 age group benefits more than 15-29 Subsidy: Age Group 0.14 0.02* - Supports Ha: 30-59 age group benefits more than 15-29 group. First-Stage F-statistic 15.2 - - Validates instrument strength in IV regression. H5: Women's unpaid work persists despite subsidies Subsidy: Gender (Unpaid) 0.20 0.01* - Supports Ha: Women's unpaid work (~2.0 hrs.) persists despite subsidies. Subsidy: Gender (Paid) 0.15 0.25 - Non-significant effect on paid hours aligns with H0. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 21
Addressing the Dropouts and pre- preparation of students 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 22 Alternative Models for SC/ST Empowerment in Tamil Nadu NEET Coaching: Tamil Nadu offers free coaching for SC/ST students, contributing to higher medical admissions. In 2025, there are 5,250 government MBBS seats and 6,450 private MBBS seats available. TMT Self-Help Groups: Studies show SHGs have boosted entrepreneurship among SC/ST women, improving economic independence and income levels. SC/ST Act Enforcement: Tamil Nadu has a dedicated SC/ST Commission to oversee legal protections, ensuring justice access and addressing caste-based discrimination. Ambedkar Scholarships: These scholarships support higher education and employability for SC/ST students, including financial aid for professional courses and overseas education assistance.
Women Children Well-being Quintile (Income) Subsidies (S) Cereal Consumption (C) Learning Score (L) AI Exposure (A) Toilet Provision (T) Menstrual Disposal (M) Harassment Awareness (H) Estimated Well-being (W) Q1 (Poorest) ₹5,500 ₹150 50% 0 (No) 70% 30% 50% 44 Q2 ₹4,500 ₹135 52% 0 (No) 80% 40% 60% 45 Q3 ₹3,500 ₹120 60% 1 (Yes) 85% 50% 70% 50.3 Q4 ₹2,500 ₹100 68% 1 (Yes) 90% 60% 80% 51 Q5 (Richest) ₹1,200 ₹80 75% 1 (Yes) 95% 70% 90% 52 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 23
How the KMUT Helps Different groups 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 24
Minorities ( Muslims, Christians and others) Income Quintile Income Range (₹) Minorities (%) Non-Minorities (%) Lowest 20% Up to 100,000 25 75 Lower-Middle 20% 100,001– 180,000 18 82 Middle 20% 180,001– 250,000 12 88 Upper-Middle 20% 250,001– 350,000 8 92 Top 20% Above 350,000 5 95 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 25
Econometric Methods used for Research Tool Primary Use Application in Tamil Nadu Propensity Score Matching (PSM) Estimate causal effects by matching treated/control Evaluate reservation impacts on employment, matching beneficiaries with similar non-beneficiaries Difference-in-Differences-in- Differences (DDD) Compare outcomes over time, groups, and regions Assess policy effects across Tamil Nadu and other states, comparing pre/post reservation trends Instrumental Variables (IV) Address endogeneity, use exogenous instruments Analyze reservation self-selection, using policy access points as instruments Seemingly Unrelated Regressions (SUR) Analyze multiple correlated outcomes simultaneously Capture holistic effects on income, education, and health from reservation policies ARIMAX Model time-series with exogenous variables Track long-term income trends, incorporating reservation policies and economic factors 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 26
Quintile Creation and Income Distribution Income Distribution in Tamil Nadu Log-Normal Distribution: Used to model right-skewed income data. Gini Coefficient: 0.32, indicating moderate inequality. Quintile Breakdown: ◦ Lowest 20% → Top 20% analysed for disparity. Key Pattern: Urban wealth concentration (e.g., Chennai) Lower earning potential in rural areas 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 27
Social Groups in five Quintiles Category Population % Lowest 20% Lower-Middle 20% Middle 20% Upper-Middle 20% Top 20% Reservation % Key Issues Scheduled Castes (SC) 20% 30% 25% - - 10% 18% (SC/ST combined) Historical discrimination, limited access to resources Scheduled Tribes (ST) 1% 2% - - 0.5% 0.5% 18% (SC/ST combined) Marginalization, reliance on subsistence agriculture Other Backward Classes (OBC) 76% 65% - 75% 80% - 50% (30% BC, 20% MBC) Intra-group disparities General Category 3% 3% - - - 7.5% - Better access to education, opportunities, and professional networks 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 28
Five Quintiles and per capita income F. Year Total per capita Income Lowest per capita Income Lower- Middle per capita Income Middle per capita Income Upper- Middle per capita Income Top per capita Income 2020-21 143,547 50,000 90,000 130,000 180,000 270,000 2021-22 154,557 55,000 95,000 140,000 195,000 290,000 2022-23 166,590 60,000 100,000 150,000 210,000 310,000 2023-24 179,732 65,000 110,000 160,000 225,000 335,000 2024- 25* 189,732 70,000 115,000 170,000 235,000 350,000 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 29
Characteristics of the Income Groups Income Group Description Average Per Capita Quartile Lowest 20% Subsistence-level incomes, reliant on subsidies and informal work 70,000 Q1 Lower-Middle 20% Basic wage earners, including semi-skilled labourers 115,000 Q2 Middle 20% Skilled workers and small business owners 170,000 Q3 Upper-Middle 20% Professionals and salaried employees 235,000 Q4 Top 20% High-income professionals, industrialists, and entrepreneurs 350,000 Q5 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 30
Changes in income for the past 4 years Category Income FY 2020-21 (₹) Income FY 2024-25 (₹) Growth (%) Top 20% 270,000 350,000 29.63 Lowest 20% 50,000 70,000 40 Income Gap 220,000 280,000 27.27 Middle & Upper- Middle Quintiles - - 30-31 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 31
Income Inequalities are showing a lower trend This is a positive sign for social cohesion and investment. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 32
Theil’s Index Aspect Details Analysis Focus Income inequality in Tamil Nadu using Theil Index Advantages of Theil Index Sensitivity to tails, Decomposability Sensitivity to Tails Different versions highlight inequality in high-income (Theil T) or low-income (Theil L) groups Decomposability Can separate inequality into between-group and within-group components State Average Per Capita Income (2024-25) ₹3.58 lakh at current prices Sample Districts Kanyakumari (₹4.5 lakh), Chennai (₹4.2 lakh), Coimbatore (₹3.6 lakh), Ariyalur (₹2.0 lakh), Perambalur (₹1.9 lakh) Population Estimates Based on scaled 2011 Census data Theil T Index 0.1572 Between-group Component (Theil T) 0.0201 (13% of total) Within-group Component (Theil T) 0.1371 (87% of total) Theil L Index 0.1592 Between-group Component (Theil L) 0.0221 (14% of total) Within-group Component (Theil L) 0.1371 (86% of total) Key Findings Moderate overall inequality, Within-district inequality dominates, Between-district inequality is low, Tail sensitivity insights Policy Implications Urban inequality, Rural development, Balanced approach Data Requirements Complete district-level per capita income data, Updated population figures, Individual or household-level income data, Additional demographic breakdowns 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 33
Increase in LFPR across Groups 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 34
Caste Distances Index of Tamil Nadu Caste Brahmins Gounders Nadars Chettiars Thevars Vanniars Yadavas SC ST Brahmins 0 3.5 3.2 3.0 4.0 4.2 4.5 4.8 4.9 Gounders 3.5 0 2.8 2.5 2.0 2.3 3.0 4.5 4.7 Nadars 3.2 2.8 0 2.2 2.5 2.7 3.2 4.3 4.6 Chettiars 3.0 2.5 2.2 0 2.3 2.5 3.0 4.2 4.5 Thevars 4.0 2.0 2.5 2.3 0 2.0 2.8 4.0 4.3 Vanniars 4.2 2.3 2.7 2.5 2.0 0 2.5 4.1 4.4 Yadavas 4.5 3.0 3.2 3.0 2.8 2.5 0 4.0 4.2 SC 4.8 4.5 4.3 4.2 4.0 4.1 4.0 0 2.0 ST 4.9 4.7 4.6 4.5 4.3 4.4 4.2 2.0 0 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 35
Cross Validation of Data MPCE(2024) State/Region Area MPCE (₹) Tamil Nadu Rural 5,872 Tamil Nadu Urban 8,325 Gujarat Rural 4,190 Gujarat Urban 7,198 All India Rural 3,773 All India Urban 6,459 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 36
Debunking the "Freebies" Myth Refuting the "Dependency Trap" Narrative •The Myth: Welfare schemes are "freebies" that encourage laziness. •The Reality: Research decisively proves they are not. Instead, they function as crucial enablers. •The Evidence: There is a direct correlation between these schemes and a significant increase in the Labor Force Participation Rate (LFPR). 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 37
Breakfast and Midday meals scheme Social Impact Aspect Finding Source URL Social Eating and Wellbeing Increases happiness, life satisfaction, and social networks University of Oxford Trust and Cooperation Eating same food speeds up agreements, increases trust NPR Evening Meals and Closeness Feels closer, especially with laughter, reminiscences, and alcohol PMC Family Benefits Improves communication, reduces loneliness, enhances support networks Parents Community Impact Reduces loneliness, builds social capital through events like The Big Lunch University of Oxford 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 38
Benefits of Eating together Aspect Finding Source URL Social Eating and Wellbeing Increases happiness, life satisfaction, and social networks University of Oxford Trust and Cooperation Eating same food speeds up agreements, increases trust NPR Evening Meals and Closeness Feels closer, especially with laughter, reminiscences, and alcohol PMC Family Benefits Improves communication, reduces loneliness, enhances support networks Parents Community Impact Reduces loneliness, builds social capital through events like The Big Lunch University of Oxford 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 39
6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 40
Gender & Subsidy: Labor Force Participation Shift Key Insights: Women benefited more (LFPR +0.12 after subsidy) Baseline LFPR: Women 43%, Men 59% Policy Effect: Women more responsive (Est. 0.10, p=0.05) DDD Analysis Highlights: Three-way interaction: Gender, Time, Subsidy (p=0.02) Graph shows steeper rise for women post-subsidy Time effect not significant (Est. 0.03, p=0.55)—change driven by subsidy Conclusion: Subsidy narrowed gender gap, but disparities persist Proof of policy effectiveness, reinforcing targeted intervention 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 41
6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 42
DID Analysis School Going children are not going for employment as they are going to school and older adults are going for employment. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 43
Helping Aged and Adolescents Age-Based Impact of Subsidy – Education & Employment Key DID Insights: Lower Age Group (Students) Before Subsidy: Limited school enrollment due to financial barriers. After Subsidy: Increased access to education—higher enrollment rates. Higher Age Group (Workers) Before Subsidy: Workforce participation restricted by lack of support. After Subsidy: Economic uplift leads to higher employment rates. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 44
DID Model Breakdown ge-Based Impact of Subsidy – Education & Employment Key DID Insights: Lower Age Group (Students) Before Subsidy: School enrollment at 62%. After Subsidy: Enrollment increased to 79%. Higher Age Group (Workers) Before Subsidy: Labor Force Participation Rate (LFPR) at 55%. After Subsidy: LFPR rose to 68%. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 45
Do Subsidies Make the Poor Lazy? Impact of Subsidies on Labor Force Participation (LFPR) Income Quintiles: LFPR rises most in Q1-Q2 (+2%), where subsidies are critical. No reduction in work—breakfast & transport aid enable jobs. Gender Effects: Women’s LFPR gains (+3%) outpace men’s (+2%). SC/ST women in Q1 lead gains (+3-4%), driven by targeted support. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 46
Do Subsidies Make the Poor Lazy? Social Groups: SC/ST see highest LFPR boost (+2.5-2.8%)—strong empowerment. OBC: Moderate gains (+2%) OC: Least impact (+1%). Age Dynamics: 30-44 women gain most (+3.5%)—strong workforce integration. 15-29 age group (+2%) prioritizing education. No age group shows LFPR decline, reinforcing policy effectiveness 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 47
Vanakkam Kindly provide your feedback 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 48

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The Economics of Dravidian Model- Equity and Social Justice

  • 1.
    The Economics ofDravidian Model: Justice and Equity for All Presentation by Dr.K.Prabhakar, Professor (Rtd) 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 1
  • 2.
    Introduction A Proven Modelof Inclusive Growth with Social Justice The Central Conclusion: The Dravidian Model has successfully balanced high economic growth with a deep commitment to social justice. A New Paradigm: Unlike models that prioritize growth at the expense of equity, Tamil Nadu demonstrates that the two can be achieved simultaneously. This presentation distils the 15 key successes of this model, as empirically validated using advanced statistical tools. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 2
  • 3.
    Economic Growth (StateGDP) Tamil Nadu's Economic Growth (2023-24) Growth Rate: 9.69% (highest among large states), vs. India’s 6.5%. Sector Contribution to GSVA: Services: 53.63% Manufacturing: 33.37% Agriculture: 13% 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 3
  • 4.
    Different Schemes andBudgetary Allocation Program/Scheme Budget Allocation (₹ Crore) Details Kalaignar Magalir Urimai Thittam 13,807 Monthly ₹1,000 assistance to 1.15 crore women, totalling ₹12,720 crore annually. Fare-Free Bus Travel for Women 3,600 Subsidy for women, saving ₹888/month on average, fifty lakh daily users. Working Women’s Hostels 77 Ten new 'Thozhi' hostels, thirteen already functioning. Children Who Lost Both Parents - ₹2,000 monthly stipend for education until age 18, ~50,000 families. Urban Women’s Safety 50 Focus on secure spaces and infrastructure. Women Entrepreneurs Initiative 225 Skill development and loans up to ₹10 lakh with 20% subsidy. ‘Anbucholai’ Old Age Homes 10 Twenty-five centres in ten cities for senior citizens’ well-being. Moovalur Ramamirtham Ammaiyar Scheme 420 ₹1,000 monthly for 4.06 lakh girls for higher education. CM Breakfast Scheme Extension 600 Extended to three lakh additional students. Government Schools Infrastructure 1,000 Improving infrastructure in government schools. Kalaignar Kanavu Illam Housing 3,500 Construction of one lakh houses, total 8 lakh by 2030. Health and Family Welfare 21,906 Overall allocation for health services, including cervical cancer vaccination (₹40 crore). Rural Development and Panchayat Raj 29,465 Includes MGNREGS and rural infrastructure development, pending ₹3,796 crore from Centre. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 4
  • 5.
    How social toxicitymanifests for SC/ST in India Life Stage SC/ST Female Mortality Risk Factor Magnitude vs General Population Infancy Vaccine-preventable diseases 2.3× higher Reproductive Age Pregnancy-related sepsis 1.7× higher Adulthood Chronic kidney disease (from dehydration) 3.1× higher Elderly Early-onset dementia (nutritional deficits) 2.8× higher 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 5
  • 6.
    Methodology Tamil Nadu's DravidianModel: Socio-Economic Impact Study Focus: Evaluates reservation policies on income distribution, employment, & social equity (FY 2020-21 to FY 2024-25). Data Sources: RBI, Tamil Nadu Economic Survey 2024-25, NFHS-5, World Bank reports (No primary data collection). Key Economic Metrics: GSDP: ₹27.22T (FY 2023-24) → Projected ₹31.55T (FY 2024-25) (16% growth) Per Capita Income: ₹315,220 (FY 2023-24) (1.71x national avg.) Implications: Strong investment potential & diversified economic base (agriculture, manufacturing, services). Caste-based income distribution modeling enhances policy assessment. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 6
  • 7.
    Labor Force ParticipationRate Age Group Participation Rate 2021 Projected Participation Rate 2025 Remarks Prime Working Age (25-44) Highest 80.5% Highest participation rates observed Youth (15-24) 32.5% 34.5% Lowest participation, steady increase Older Workers (60+) Lower 30% Consistent growth, productively employed Trend Analysis Gradual increase Improvement Broad-based improvement across age groups Caste Group LFPR 2021 Projected LFPR 2025 Remarks ST (Scheduled Tribes) 52% 54% Highest LFPR OBC (Other Backward Classes) 51.5% 53.5% Strong participation rates SC (Scheduled Castes) 48.5% 50.5% Steady growth Others 47% 49% Lowest participation rates Disparity Analysis Gap stable 5 percentage points Gap between highest and lowest remains stable 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 7
  • 8.
  • 9.
  • 10.
    Comparison with Gujarat IndicatorTamil Nadu (Urban) Tamil Nadu (Rural) Gujarat (Urban) Gujarat (Rural) Literacy Rate Higher (above 90%) Lower (around 75- 80%) Higher (above 85%) Lower (around 70- 75%) Poverty Rate Lower due to better job opportunities Higher, but reduced significantly Lower due to industrial growth Higher, with slower reduction Healthcare Access Strong public and private healthcare Public healthcare available but fewer private hospitals Private healthcare dominant Limited access to quality healthcare Employment Opportunities Diverse industries, IT, manufacturing Agriculture, small-scale industries Business, trade, manufacturing Agriculture, handicrafts Infrastructure Well-developed roads, transport, electricity Basic infrastructure, improving Strong urban infrastructure Rural infrastructure still developing 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 10
  • 11.
    Education outcomes TN/UP AspectTamil Nadu Uttar Pradesh Mid-Day Meals Implemented since 1925, strong impact on outcomes Implemented, but with reported quality issues Free Breakfast Chief Minister’s Scheme since 2022, expanded 2024 No statewide scheme Free Transport Free bus passes for students, high accessibility No statewide scheme for school students Class 12 Pass Rate (2024) 94.56% (State Board), 98.48% (CBSE 2025) 82.6% Dropout Rate (Secondary) 0.5% 31% 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 11
  • 12.
    Comparison with UP SocialIndicator Tamil Nadu Uttar Pradesh Literacy Rate 81.1% 67.7% Infant Mortality Rate (per 1,000 live births) 15 41 Poverty Rate ( Base year 2011-12) 9.2% 31.9% Sex Ratio (Females per 1,000 males) 993 912 Public Health Infrastructure/Public Distribution System Strong, near universal coverage Comparatively weaker Economic Growth Rate 9.63% per annum 6.5% per annum 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 12
  • 13.
    Economic Theory ofDravidian Model Aspect Barrier-Targeted Investment Universal Basic Income (UBI) Focus Addresses specific barriers faced by different caste groups Provides uniform financial support to all, regardless of barriers Equity High, as it targets marginalized groups with tailored support Moderate, may not address specific caste- based inequalities Administrative Complexity High, requires detailed data (e.g., caste surveys) Low, simpler to implement with uniform application Risk of Stigmatization High, may reinforce caste identities Low, no specific targeting reduces stigma Effectiveness in India Mixed, effective in public sectors but limited in private/informal Potential for broad coverage, but may miss specific needs Examples Affirmative action, SC scholarships, Telangana caste survey Hypothetical UBI proposals in India 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 13
  • 14.
    Income Distribution social group wise data IncomeDistribution of SC, ST, OBC, and Other Classes in Tamil Nadu, FY 2025-26 (Nominal Estimates) Note: Percentages are estimated based on socio-economic data and reservation impacts (Government of Tamil Nadu, 2025, p. 38; IIPS, 2021; AISHE 2019-20). Income Quintile Income Range (₹) SC (%) ST (%) OBC (%) Others (%) Lowest 20% Up to 100,000 30 2 65 3 Lower-Middle 20% 100,001– 180,000 25 1 70 4 Middle 20% 180,001– 250,000 20 1 75 4 Upper-Middle 20% 250,001– 350,000 15 0.5 80 4.5 Top 20% Above 350,000 10 0.5 82 7.5 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 14
  • 15.
    Propensity Score Matching… 6/11/2025 ECONOMICSOF DRAVIDIAN MODEL 15 •Largest Pre-Matching Imbalance: Income saw the biggest absolute reduction in •Standardized Mean Difference (SMD) after matching. •Key Result: PSM successfully brought all covariates below 0.1 SMD threshold (green dashed line). •Before Matching: Income gap (Treated: 120,000 INR Control: 90,000 INR), SMD = 0.4. •After Matching: Gap reduced (Treated: 115,000 INR Control: 113,500 INR), SMD = 0.07. •High p-value (0.8): Indicates no significant residual difference → Successful balance achieved.
  • 16.
    Propensity Score Matching… Education& Caste Balance in Matching Education: ◦ Before matching: Treated: 11.8 years Control: 9.5 years (SMD = 0.35) ◦ After matching: Treated: 11.5 years Control: 11.4 years (SMD = 0.06, p = 0.83) → No significant difference Caste (SC/ST Proportion): Before matching: Treated: 0.35 Control: 0.2 (SMD = 0.3) After matching: Treated: 0.33 Control: 0.32 (SMD = 0.05, p = 0.87) → Excellent balance achieved 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 16
  • 17.
    Propensity Score Matching Linguistic& Urban Balance in Matching Tamil Speakers: ◦ Before matching: Treated: 75% Control: 60% (SMD = 0.25) ◦ After matching: Treated: 73% Control: 72% (SMD = 0.04, p = 0.9) → Near-perfect balance Urban Proportion: Before matching: Treated: 50% Control: 30% (SMD = 0.32) After matching: Treated: 48% Control: 46% (SMD = 0.08, p = 0.76) → No significant differenc 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 17
  • 18.
    Propensity Score Matching Allfive Important Dimensions have shown significant improvement across these dimensions 1. Income 2.Education 3.Caste 4.Liguistic Diversity 5. Urban and Rural. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 18
  • 19.
  • 20.
    Benefits across society AspectObservation Impact Female Participation Significant rise in female LFPR Tamil Nadu's policies supporting women's economic participation Inclusive Growth Consistent improvement across all caste groups Economic opportunities becoming more accessible across social categories Aging Workforce Engagement Steady increase in LFPR for the 60+ age group Improving conditions for older workers to remain economically active Youth Integration 15-24 age group has the lowest participation rates among working- age groups Steady increase suggests improving pathways for youth to enter the workforce Policy Effectiveness Tamil Nadu's comprehensive approach to social welfare Contributing to broader economic participation 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 20
  • 21.
    Hypothesis testing andResults Hypothesis Key Variables Estimate P-value Odds Ratio Interpretation H1: Subsidies boost LFPR for ST women Subsidy’s: Female 0.18 0.01* 1.20 Supports Ha: Subsidies significantly increase labor force participation for ST women (~1% of population). ATET (0.06) indicates a 6% LFPR increase. Subsidy: SC 0.08 0.38 1.08 Non-significant effect suggests weaker impact for SC in Q1-Q2. Subsidy’s 0.15 0.06 1.16 Marginally significant effect for ST overall. H2: Women's LFPR gains exceed men's post- subsidy Gender: Time: Subsidy 0.12 0.02* - Supports Ha: Women's LFPR (43%) gains exceed men's (59%) post-subsidy. Gender: Subsidy 0.10 0.05* - Reinforces female advantage in subsidy response. H3: ST gain more LFPR than other groups ST: Subsidy 0.17 0.02* 1.19 Supports Ha: ST gain more in LFPR with marginal effect of 0.04. SC: Subsidy 0.13 0.07 1.14 Marginally significant, suggesting partial support for SC groups. H4: 30-59 age group benefits more than 15-29 Subsidy: Age Group 0.14 0.02* - Supports Ha: 30-59 age group benefits more than 15-29 group. First-Stage F-statistic 15.2 - - Validates instrument strength in IV regression. H5: Women's unpaid work persists despite subsidies Subsidy: Gender (Unpaid) 0.20 0.01* - Supports Ha: Women's unpaid work (~2.0 hrs.) persists despite subsidies. Subsidy: Gender (Paid) 0.15 0.25 - Non-significant effect on paid hours aligns with H0. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 21
  • 22.
    Addressing the Dropoutsand pre- preparation of students 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 22 Alternative Models for SC/ST Empowerment in Tamil Nadu NEET Coaching: Tamil Nadu offers free coaching for SC/ST students, contributing to higher medical admissions. In 2025, there are 5,250 government MBBS seats and 6,450 private MBBS seats available. TMT Self-Help Groups: Studies show SHGs have boosted entrepreneurship among SC/ST women, improving economic independence and income levels. SC/ST Act Enforcement: Tamil Nadu has a dedicated SC/ST Commission to oversee legal protections, ensuring justice access and addressing caste-based discrimination. Ambedkar Scholarships: These scholarships support higher education and employability for SC/ST students, including financial aid for professional courses and overseas education assistance.
  • 23.
    Women Children Well-being Quintile (Income) Subsidies (S) CerealConsumption (C) Learning Score (L) AI Exposure (A) Toilet Provision (T) Menstrual Disposal (M) Harassment Awareness (H) Estimated Well-being (W) Q1 (Poorest) ₹5,500 ₹150 50% 0 (No) 70% 30% 50% 44 Q2 ₹4,500 ₹135 52% 0 (No) 80% 40% 60% 45 Q3 ₹3,500 ₹120 60% 1 (Yes) 85% 50% 70% 50.3 Q4 ₹2,500 ₹100 68% 1 (Yes) 90% 60% 80% 51 Q5 (Richest) ₹1,200 ₹80 75% 1 (Yes) 95% 70% 90% 52 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 23
  • 24.
    How the KMUTHelps Different groups 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 24
  • 25.
    Minorities ( Muslims,Christians and others) Income Quintile Income Range (₹) Minorities (%) Non-Minorities (%) Lowest 20% Up to 100,000 25 75 Lower-Middle 20% 100,001– 180,000 18 82 Middle 20% 180,001– 250,000 12 88 Upper-Middle 20% 250,001– 350,000 8 92 Top 20% Above 350,000 5 95 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 25
  • 26.
    Econometric Methods usedfor Research Tool Primary Use Application in Tamil Nadu Propensity Score Matching (PSM) Estimate causal effects by matching treated/control Evaluate reservation impacts on employment, matching beneficiaries with similar non-beneficiaries Difference-in-Differences-in- Differences (DDD) Compare outcomes over time, groups, and regions Assess policy effects across Tamil Nadu and other states, comparing pre/post reservation trends Instrumental Variables (IV) Address endogeneity, use exogenous instruments Analyze reservation self-selection, using policy access points as instruments Seemingly Unrelated Regressions (SUR) Analyze multiple correlated outcomes simultaneously Capture holistic effects on income, education, and health from reservation policies ARIMAX Model time-series with exogenous variables Track long-term income trends, incorporating reservation policies and economic factors 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 26
  • 27.
    Quintile Creation andIncome Distribution Income Distribution in Tamil Nadu Log-Normal Distribution: Used to model right-skewed income data. Gini Coefficient: 0.32, indicating moderate inequality. Quintile Breakdown: ◦ Lowest 20% → Top 20% analysed for disparity. Key Pattern: Urban wealth concentration (e.g., Chennai) Lower earning potential in rural areas 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 27
  • 28.
    Social Groups infive Quintiles Category Population % Lowest 20% Lower-Middle 20% Middle 20% Upper-Middle 20% Top 20% Reservation % Key Issues Scheduled Castes (SC) 20% 30% 25% - - 10% 18% (SC/ST combined) Historical discrimination, limited access to resources Scheduled Tribes (ST) 1% 2% - - 0.5% 0.5% 18% (SC/ST combined) Marginalization, reliance on subsistence agriculture Other Backward Classes (OBC) 76% 65% - 75% 80% - 50% (30% BC, 20% MBC) Intra-group disparities General Category 3% 3% - - - 7.5% - Better access to education, opportunities, and professional networks 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 28
  • 29.
    Five Quintiles andper capita income F. Year Total per capita Income Lowest per capita Income Lower- Middle per capita Income Middle per capita Income Upper- Middle per capita Income Top per capita Income 2020-21 143,547 50,000 90,000 130,000 180,000 270,000 2021-22 154,557 55,000 95,000 140,000 195,000 290,000 2022-23 166,590 60,000 100,000 150,000 210,000 310,000 2023-24 179,732 65,000 110,000 160,000 225,000 335,000 2024- 25* 189,732 70,000 115,000 170,000 235,000 350,000 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 29
  • 30.
    Characteristics of theIncome Groups Income Group Description Average Per Capita Quartile Lowest 20% Subsistence-level incomes, reliant on subsidies and informal work 70,000 Q1 Lower-Middle 20% Basic wage earners, including semi-skilled labourers 115,000 Q2 Middle 20% Skilled workers and small business owners 170,000 Q3 Upper-Middle 20% Professionals and salaried employees 235,000 Q4 Top 20% High-income professionals, industrialists, and entrepreneurs 350,000 Q5 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 30
  • 31.
    Changes in incomefor the past 4 years Category Income FY 2020-21 (₹) Income FY 2024-25 (₹) Growth (%) Top 20% 270,000 350,000 29.63 Lowest 20% 50,000 70,000 40 Income Gap 220,000 280,000 27.27 Middle & Upper- Middle Quintiles - - 30-31 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 31
  • 32.
    Income Inequalities areshowing a lower trend This is a positive sign for social cohesion and investment. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 32
  • 33.
    Theil’s Index Aspect Details AnalysisFocus Income inequality in Tamil Nadu using Theil Index Advantages of Theil Index Sensitivity to tails, Decomposability Sensitivity to Tails Different versions highlight inequality in high-income (Theil T) or low-income (Theil L) groups Decomposability Can separate inequality into between-group and within-group components State Average Per Capita Income (2024-25) ₹3.58 lakh at current prices Sample Districts Kanyakumari (₹4.5 lakh), Chennai (₹4.2 lakh), Coimbatore (₹3.6 lakh), Ariyalur (₹2.0 lakh), Perambalur (₹1.9 lakh) Population Estimates Based on scaled 2011 Census data Theil T Index 0.1572 Between-group Component (Theil T) 0.0201 (13% of total) Within-group Component (Theil T) 0.1371 (87% of total) Theil L Index 0.1592 Between-group Component (Theil L) 0.0221 (14% of total) Within-group Component (Theil L) 0.1371 (86% of total) Key Findings Moderate overall inequality, Within-district inequality dominates, Between-district inequality is low, Tail sensitivity insights Policy Implications Urban inequality, Rural development, Balanced approach Data Requirements Complete district-level per capita income data, Updated population figures, Individual or household-level income data, Additional demographic breakdowns 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 33
  • 34.
    Increase in LFPRacross Groups 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 34
  • 35.
    Caste Distances Indexof Tamil Nadu Caste Brahmins Gounders Nadars Chettiars Thevars Vanniars Yadavas SC ST Brahmins 0 3.5 3.2 3.0 4.0 4.2 4.5 4.8 4.9 Gounders 3.5 0 2.8 2.5 2.0 2.3 3.0 4.5 4.7 Nadars 3.2 2.8 0 2.2 2.5 2.7 3.2 4.3 4.6 Chettiars 3.0 2.5 2.2 0 2.3 2.5 3.0 4.2 4.5 Thevars 4.0 2.0 2.5 2.3 0 2.0 2.8 4.0 4.3 Vanniars 4.2 2.3 2.7 2.5 2.0 0 2.5 4.1 4.4 Yadavas 4.5 3.0 3.2 3.0 2.8 2.5 0 4.0 4.2 SC 4.8 4.5 4.3 4.2 4.0 4.1 4.0 0 2.0 ST 4.9 4.7 4.6 4.5 4.3 4.4 4.2 2.0 0 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 35
  • 36.
    Cross Validation ofData MPCE(2024) State/Region Area MPCE (₹) Tamil Nadu Rural 5,872 Tamil Nadu Urban 8,325 Gujarat Rural 4,190 Gujarat Urban 7,198 All India Rural 3,773 All India Urban 6,459 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 36
  • 37.
    Debunking the "Freebies"Myth Refuting the "Dependency Trap" Narrative •The Myth: Welfare schemes are "freebies" that encourage laziness. •The Reality: Research decisively proves they are not. Instead, they function as crucial enablers. •The Evidence: There is a direct correlation between these schemes and a significant increase in the Labor Force Participation Rate (LFPR). 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 37
  • 38.
    Breakfast and Middaymeals scheme Social Impact Aspect Finding Source URL Social Eating and Wellbeing Increases happiness, life satisfaction, and social networks University of Oxford Trust and Cooperation Eating same food speeds up agreements, increases trust NPR Evening Meals and Closeness Feels closer, especially with laughter, reminiscences, and alcohol PMC Family Benefits Improves communication, reduces loneliness, enhances support networks Parents Community Impact Reduces loneliness, builds social capital through events like The Big Lunch University of Oxford 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 38
  • 39.
    Benefits of Eatingtogether Aspect Finding Source URL Social Eating and Wellbeing Increases happiness, life satisfaction, and social networks University of Oxford Trust and Cooperation Eating same food speeds up agreements, increases trust NPR Evening Meals and Closeness Feels closer, especially with laughter, reminiscences, and alcohol PMC Family Benefits Improves communication, reduces loneliness, enhances support networks Parents Community Impact Reduces loneliness, builds social capital through events like The Big Lunch University of Oxford 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 39
  • 40.
  • 41.
    Gender & Subsidy:Labor Force Participation Shift Key Insights: Women benefited more (LFPR +0.12 after subsidy) Baseline LFPR: Women 43%, Men 59% Policy Effect: Women more responsive (Est. 0.10, p=0.05) DDD Analysis Highlights: Three-way interaction: Gender, Time, Subsidy (p=0.02) Graph shows steeper rise for women post-subsidy Time effect not significant (Est. 0.03, p=0.55)—change driven by subsidy Conclusion: Subsidy narrowed gender gap, but disparities persist Proof of policy effectiveness, reinforcing targeted intervention 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 41
  • 42.
  • 43.
    DID Analysis School Goingchildren are not going for employment as they are going to school and older adults are going for employment. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 43
  • 44.
    Helping Aged andAdolescents Age-Based Impact of Subsidy – Education & Employment Key DID Insights: Lower Age Group (Students) Before Subsidy: Limited school enrollment due to financial barriers. After Subsidy: Increased access to education—higher enrollment rates. Higher Age Group (Workers) Before Subsidy: Workforce participation restricted by lack of support. After Subsidy: Economic uplift leads to higher employment rates. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 44
  • 45.
    DID Model Breakdown ge-BasedImpact of Subsidy – Education & Employment Key DID Insights: Lower Age Group (Students) Before Subsidy: School enrollment at 62%. After Subsidy: Enrollment increased to 79%. Higher Age Group (Workers) Before Subsidy: Labor Force Participation Rate (LFPR) at 55%. After Subsidy: LFPR rose to 68%. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 45
  • 46.
    Do Subsidies Makethe Poor Lazy? Impact of Subsidies on Labor Force Participation (LFPR) Income Quintiles: LFPR rises most in Q1-Q2 (+2%), where subsidies are critical. No reduction in work—breakfast & transport aid enable jobs. Gender Effects: Women’s LFPR gains (+3%) outpace men’s (+2%). SC/ST women in Q1 lead gains (+3-4%), driven by targeted support. 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 46
  • 47.
    Do Subsidies Makethe Poor Lazy? Social Groups: SC/ST see highest LFPR boost (+2.5-2.8%)—strong empowerment. OBC: Moderate gains (+2%) OC: Least impact (+1%). Age Dynamics: 30-44 women gain most (+3.5%)—strong workforce integration. 15-29 age group (+2%) prioritizing education. No age group shows LFPR decline, reinforcing policy effectiveness 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 47
  • 48.
    Vanakkam Kindly provide yourfeedback 6/11/2025 ECONOMICS OF DRAVIDIAN MODEL 48