  Prevalence of open defecation is associated with adverse health effects,
detrimental not only for the individual but also the community. Therefore,
neighborhood characteristics can influence collective progressive behavior such
as improved sanitation practices. This paper uses primary data collected from
rural and urban areas of Bihar to study the relationship between jati
(sub-castes) level fractionalization within the community and toilet ownership
and its usage for defecation. The findings indicate a diversity dividend
wherein jati fractionalization is found to improve toilet ownership and usage
significantly. While exploring the channels, we find social expectations to
play an important role, where individuals from diverse communities tend to
believe that there is a higher prevalence of toilet usage within the community.
To assess the reasons for the existence of these social expectations, we use
data from an egocentric network survey on a sub-sample of the households. The
findings reveal that in fractionalized communities, the neighbors with whom our
respondents interacted are more likely to be from different jatis. They are
also more likely to use toilets and approve of its usage due to health reasons.
Discussions about toilets are more common among neighbors from fractionalized
communities, which underscore the discernible role of social learning. The
inferences drawn from the paper have significant implications for community
level behavioral change interventions that aim at reducing open defecation.
