Around the world, governments use identity categories to design economic policies (such as tax, welfare and labour market policies) with the goal of reducing inequality between different groups.

For example, India reserves a share of public-sector jobs for certain caste groups. South Africa sets racial targets for company ownership, hiring, and government contracts

Identity politics is a framework within social justice movements that focuses on how individuals’ experiences are shaped by aspects of their identity, such as race, gender, ethnicity or disability. It has become increasingly influential in shaping how movements identify inequality, demand representation, and advocate for social change. Examples of identity-based movements include the Black Lives Matter movement, feminist movements, Indigenous rights movements, and disability rights movements.