Abstract
How do ties with elite peers affect the social mobility of non-elites who have historically faced social exclusion? Using novel data on high school and university graduates in five colonial Indian provinces between 1894 and 1921, I examine the effects of elite peers, defined as upper-caste graduates, on non-elites. Exploiting the plausibly random variation in the share of elite peers across all graduating cohorts within the same high school, I find that exposure to more elite peers reduces the probability that non-elite graduates, particularly those from merchant castes, complete university or become lawyers. These effects are driven by caste rank rather than economic differences between elites and non-elites. The negative effect is strongest in private schools and among students graduating with the lowest grades in their high school examinations. Overall, the results suggest that exposure to elite peers in settings with significant social distance between elites and non-elites may hinder rather than foster upward mobility among non-elites.