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The incentive structure, consequent on the institutional structure, significantly influences expectations. However, in this context, differences in individual perceptions of opportunities and capacities to pursue them broadly relate to socio‐economic background, school and community‐related factors. The main finding on the relationship between expectations and post‐school choice is that an overwhelming majority of students expect significant improvement in income, career opportunities, social prestige and marriage prospects, regardless of intended post‐school choice. There is very little variation in response across groups. However, whether an individual actually goes to college will depend on his/her capacity to act on an opportunity.

There is sufficient empirical evidence to suggest that discrimination, defined as absence of equal opportunities, exists before the market as well as in the market against certain social categories in India. Inequality in access to sources of human capital acquisition reinforces inequality in the labour market and vice versa. Apparently, caste‐community discrimination and class discrimination overlap. However, in the case of socially deprived categories, the latter accentuates the former. The impact of modernisation notwithstanding, the inegalitarian sacral tradition of caste still has strong hold over the minds and lives of Indians. The development processes have strengthened caste and community consciousness resulting in the metamorphosis of different social categories into interest groups. With patron‐client relationship as the basis for political mobilization, development policies have favoured the dominant social categories as well as the articulate better‐off sections across all social categories. So it seems that “divinely ordained” social inequities persist in a secular garb, though possibly with reduced inhumanity. Yet, with increasing political assertion of the lower social categories and widening opportunities for social mobility, hegemony of the traditional elite is likely to decline. The change in the composition of the elite should foster non‐brahmanical pragmatic cultural ethos conducive to social mobility and development. The policies designed to promote equal opportunities, taking into account heterogeneity of Indian society, will speed up the process of socio‐economic change.

In view of significance of social entrepreneurial activity for community development, the purpose of this paper is to attempt to identify attributes of social entrepreneurs and philanthropists among returning successful diaspora in North Indian villages. Philanthropists are defined by the fact that they only invest money, whereas the social entrepreneurs invest their activities as well. An attempt is also made to ascertain key determinants and processes influencing outcomes of social entrepreneurial activity with a view to facilitate it.

Emphasis is on qualitative analysis based on interviews of scientifically sampled respondents. However, the paper suggests that the rational choice approach is inappropriate to address the issue of community development. An approach based on a broader view of man in works of some classical economists like Adam Smith is more useful.

The results of empirical analysis suggest that there exist substantial factors, such as early socialization, experience in community work, education and health, that differentiate social entrepreneurs and philanthropists. Salience of relationship between formal and informal institutions, personal traits and social skills of social entrepreneurs in influencing outcomes of social entrepreneurial activity is indicated. By investing moral and material resources in communities, social entrepreneurs augment social capital and facilitate social action. In contrast, philanthropists may add to distortions in community functioning, especially if they opt to operate through largely dysfunctional formal local institutions due to structural impasse in rural areas.

The paper pertains to Indian Punjab, an area with a long history of emigration. However, researchers need to take into account distinct socio‐economic conditions in Punjab when designing studies for other areas.

Policy measures addressing hurdles in the way of social entrepreneurial activity can speed up the modernization of traditional communities.

The paper adds to understanding of what motivates human behaviour in economic analysis of community development. Further, it makes an important distinction between the roles of the philanthropist and the social entrepreneur in community development. The paper would be useful to researchers desirous of doing similar exercises in other areas.

The purpose of this paper is to ascertain impact of modernisation on moral behaviour in village communities in North India.

Both qualitative and empirical analysis is done to evaluate a set of ideas related to the main objective. The empirical analysis is based on primary data.

Limitations of primary data notwithstanding, results suggest that in-group, inter-group and generalised trust are not exclusive. The empirical results also suggest that significant sources of inter-group trust are trust in neighbours, trust in village council, development/modernisation and education. And sources of generalised trust seem to be inter-group trust, trust in village council, development and education.

The study pertains to village communities in Indian Punjab embedded in region’s evolved syncretic culture. Researchers need to take into account historical specificities while designing studies for other areas.

The paper finds that majority of individuals in the evolved, heterogenous communities are inclusive and subscribe to moran values that persist with modernisation. But core values may become dormant in a situation of social disequilibrium. Inclusive development and spread of education in a conducive local institutional framework seem to restore them.