IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp13847.html
   My bibliography  Save this paper

The Impact of Employment Quotas on the Economic Lives of Disadvantaged Minorities in India

Author

Listed:
  • Prakash, Nishith

    (Northeastern University)

Abstract

India has the world's biggest and arguably most aggressive employment-based affirmative action policy for minorities. This paper exploits the institutional features of a federally mandated employment quota policy to examine its causal impact on the economic lives of the two distinct minority groups (Scheduled Castes and Scheduled Tribes). My main finding is that a 1-percentage point increase in the employment quota for Scheduled Castes increases the likelihood of obtaining a salaried job by 0.6-percentage points for male Scheduled Caste members residing in the rural sector. The employment quota policy has no impact for Scheduled Tribes. Contrary to popular notion, I do not find evidence of "elite-capture" among the Scheduled Castes – the impact is concentrated among members who have completed less than secondary education. Consistent with the employment results, I find that the policy improved the well-being of Scheduled Castes members in rural areas who have completed less than secondary education. Finally, the impact of the employment quota policy varies by state characteristics.

Suggested Citation

  • Prakash, Nishith, 2020. "The Impact of Employment Quotas on the Economic Lives of Disadvantaged Minorities in India," IZA Discussion Papers 13847, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13847
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp13847.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jennifer R. Peck, 2017. "Can Hiring Quotas Work? The Effect of the Nitaqat Program on the Saudi Private Sector," American Economic Journal: Economic Policy, American Economic Association, vol. 9(2), pages 316-347, May.
    2. David Card & Alan B. Krueger, 2005. "Would the Elimination of Affirmative Action Affect Highly Qualified Minority Applicants? Evidence from California and Texas," ILR Review, Cornell University, ILR School, vol. 58(3), pages 416-434, April.
    3. Esther Duflo, 2005. "Why Political Reservations?," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 668-678, 04/05.
    4. Peter Arcidiacono & Esteban M. Aucejo & Hanming Fang & Kenneth I. Spenner, 2011. "Does affirmative action lead to mismatch? A new test and evidence," Quantitative Economics, Econometric Society, vol. 2(3), pages 303-333, November.
    5. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, and Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(2), pages 389-430.
    6. Harry J. Holzer & David Neumark, 2000. "What Does Affirmative Action Do?," ILR Review, Cornell University, ILR School, vol. 53(2), pages 240-271, January.
    7. Beller, Andrea H, 1978. "The Economics of Enforcement of an Antidiscrimination Law: Title VII of the Civil Rights Act of 1964," Journal of Law and Economics, University of Chicago Press, vol. 21(2), pages 359-380, October.
    8. Chin, Aimee & Prakash, Nishith, 2011. "The redistributive effects of political reservation for minorities: Evidence from India," Journal of Development Economics, Elsevier, vol. 96(2), pages 265-277, November.
    9. Bertrand, Marianne & Hanna, Rema & Mullainathan, Sendhil, 2010. "Affirmative action in education: Evidence from engineering college admissions in India," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 16-29, February.
    10. Richard B. Freeman, 1973. "Changes in the Labor Market for Black Americans, 1948-72," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(1), pages 67-132.
    11. Rohini Pande, 2003. "Can Mandated Political Representation Increase Policy Influence for Disadvantaged Minorities? Theory and Evidence from India," American Economic Review, American Economic Association, vol. 93(4), pages 1132-1151, September.
    12. Charles Brown, 1984. "Black-White Earnings Ratios Since the Civil Rights Act of 1964: The Importance of Labor Market Dropouts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(1), pages 31-44.
    13. Peter Hinrichs, 2012. "The Effects of Affirmative Action Bans on College Enrollment, Educational Attainment, and the Demographic Composition of Universities," The Review of Economics and Statistics, MIT Press, vol. 94(3), pages 712-722, August.
    14. Justin McCrary, 2007. "The Effect of Court-Ordered Hiring Quotas on the Composition and Quality of Police," American Economic Review, American Economic Association, vol. 97(1), pages 318-353, March.
    15. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    16. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as Policy Makers: Evidence from a Randomized Policy Experiment in India," Econometrica, Econometric Society, vol. 72(5), pages 1409-1443, September.
    17. Coate, Stephen & Loury, Glenn C, 1993. "Will Affirmative-Action Policies Eliminate Negative Stereotypes?," American Economic Review, American Economic Association, vol. 83(5), pages 1220-1240, December.
    18. Leonard, Jonathan S, 1990. "The Impact of Affirmative Action Regulation and Equal Employment Law on Black Employment," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 47-63, Fall.
    19. Mark C. Long, 2004. "Race and College Admissions: An Alternative to Affirmative Action?," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1020-1033, November.
    20. Jessica S. Howell, 2010. "Assessing the Impact of Eliminating Affirmative Action in Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 28(1), pages 113-166, January.
    21. Donohue, John J, III & Heckman, James, 1991. "Continuous versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," Journal of Economic Literature, American Economic Association, vol. 29(4), pages 1603-1643, December.
    22. Leonard, Jonathan S, 1984. "The Impact of Affirmative Action on Employment," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 439-463, October.
    23. Roland G. Fryer Jr. & Glenn C. Loury, 2005. "Affirmative Action and Its Mythology," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 147-162, Summer.
    24. Leonard, Jonathan S, 1984. "Employment and Occupational Advance under Affirmative Action," The Review of Economics and Statistics, MIT Press, vol. 66(3), pages 377-385, August.
    25. Caitlin Knowles Myers, 2007. "A Cure for Discrimination? Affirmative Action and the Case of California's Proposition 209," ILR Review, Cornell University, ILR School, vol. 60(3), pages 379-396, April.
    26. Smith, James P & Welch, Finis, 1984. "Affirmative Action and Labor Markets," Journal of Labor Economics, University of Chicago Press, vol. 2(2), pages 269-301, April.
    27. Gaurav Khanna, 2020. "Does Affirmative Action Incentivize Schooling? Evidence from India," The Review of Economics and Statistics, MIT Press, vol. 102(2), pages 219-233, May.
    28. Smith, James P & Welch, Finis R, 1989. "Black Economic Progress after Myrdal," Journal of Economic Literature, American Economic Association, vol. 27(2), pages 519-564, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chakraborty, Tanika & Mukherjee, Anirban & Saha, Sarani & Shukla, Divya, 2021. "Caste, Courts and Business," GLO Discussion Paper Series 935, Global Labor Organization (GLO).
    2. Gautam Bose & Arghya Ghosh, 2022. "Affirmative Action, Equal Opportunity, or just tax the rich? Development, efficiency, and the pursuit of equity," Discussion Papers 2022-02, School of Economics, The University of New South Wales.
    3. Sandhya Garg & Samarth Gupta & Sushanta Mallick, 2023. "Does Social Identity Constrain Rural Entrepreneurship? The Role of Financial Inclusion," IEG Working Papers 460, Institute of Economic Growth.
    4. Guillaume Marois & Ekaterina Zhelenkova & Balhasan Ali, 2022. "Labour Force Projections in India Until 2060 and Implications for the Demographic Dividend," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 477-497, November.
    5. Pushkar Maitra & Ananta Neelim, 2024. "Discrimination in Developing Countries," Monash Economics Working Papers 2024-03, Monash University, Department of Economics.
    6. Chakraborty, Tanika & Mukherjee, Anirban & Saha, Sarani & Shukla, Divya, 2023. "Caste, courts and business," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 333-365.
    7. Tamalika Lodh & Poulomi Roy & Malabika Roy, 2021. "Intergenerational occupational mobility in India across social groups," Indian Economic Review, Springer, vol. 56(2), pages 405-433, December.
    8. Nawazuddin Ahmed & Dinesh K. Nauriyal, 2023. "Occupational and Educational Mobility Among Indian Muslims: Primary Survey-Based Evidence," Millennial Asia, , vol. 14(2), pages 228-259, June.
    9. Bhupatiraju,Sandeep & Chen,Daniel Li & Joshi,Shareen & Neis,Peter Konstantin, 2021. "Who Is in Justice? Caste, Religion and Gender in the Courts of Bihar over a Decade," Policy Research Working Paper Series 9555, The World Bank.
    10. MATSUMOTO Kodai & OKUMURA Yota & NAKAMURA Kenta & MORIMOTO Atsushi & YUGAMI Kazufumi, 2024. "Revisiting Disability Employment and Firm Productivity in Japan," Discussion papers 24045, Research Institute of Economy, Trade and Industry (RIETI).
    11. Najam, Rafiuddin, 2024. "Closing the gap: Effect of a gender quota on women’s access to education in Afghanistan," Economics of Education Review, Elsevier, vol. 99(C).
    12. Subedi, Mukti Nath & Rafiq, Shuddhasattwa & Ulker, Aydogan, 2022. "Effects of Affirmative Action on Educational and Labour Market Outcomes: Evidence from Nepal's Reservation Policy," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 443-463.
    13. Sugata Bag & Suman Seth & Barnali Basak, 2023. "Heterogeneous effect of the Indian affirmative action: The role of caste certificates," Working papers 339, Centre for Development Economics, Delhi School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prakash, Nishith, 2020. "The impact of employment quotas on the economic lives of disadvantaged minorities in India," Journal of Economic Behavior & Organization, Elsevier, vol. 180(C), pages 494-509.
    2. Prakash, Nishith, 2008. "Improving the Labor Market Outcomes of Minorities: The Role of Employment Quota," MPRA Paper 11010, University Library of Munich, Germany.
    3. Najam, Rafiuddin, 2024. "Closing the gap: Effect of a gender quota on women’s access to education in Afghanistan," Economics of Education Review, Elsevier, vol. 99(C).
    4. Surendrakumar Bagde & Dennis Epple & Lowell Taylor, 2016. "Does Affirmative Action Work? Caste, Gender, College Quality, and Academic Success in India," American Economic Review, American Economic Association, vol. 106(6), pages 1495-1521, June.
    5. Subedi, Mukti Nath & Rafiq, Shuddhasattwa & Ulker, Aydogan, 2022. "Effects of Affirmative Action on Educational and Labour Market Outcomes: Evidence from Nepal's Reservation Policy," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 443-463.
    6. Roland G. Fryer, Jr. & Devah Pager & Jörg L. Spenkuch, 2013. "Racial Disparities in Job Finding and Offered Wages," Journal of Law and Economics, University of Chicago Press, vol. 56(3), pages 633-689.
    7. Peter Arcidiacono & Michael Lovenheim, 2016. "Affirmative Action and the Quality-Fit Trade-Off," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 3-51, March.
    8. Chin, Aimee & Prakash, Nishith, 2011. "The redistributive effects of political reservation for minorities: Evidence from India," Journal of Development Economics, Elsevier, vol. 96(2), pages 265-277, November.
    9. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS
    10. Elizabeth Kaletski & Nishith Prakash, 2017. "Can Elected Minority Representatives Affect Health Worker Visits? Evidence from India," Review of Development Economics, Wiley Blackwell, vol. 21(1), pages 67-102, February.
    11. Gaurav Khanna, 2020. "Does Affirmative Action Incentivize Schooling? Evidence from India," The Review of Economics and Statistics, MIT Press, vol. 102(2), pages 219-233, May.
    12. John J. Donohue III, 2005. "The Law and Economics of Antidiscrimination Law," NBER Working Papers 11631, National Bureau of Economic Research, Inc.
    13. Fernanda Estevan & Thomas Gall & Louis-Philippe Morin, 2019. "Redistribution Without Distortion: Evidence from an Affirmative Action Programme at a Large Brazilian University," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1182-1220.
    14. Kaletski, Elizabeth & Prakash, Nishith, 2016. "Does Political Reservation for Minorities Affect Child Labor? Evidence from India," World Development, Elsevier, vol. 87(C), pages 50-69.
    15. Lex Borghans & Bas Ter Weel & Bruce A. Weinberg, 2014. "People Skills and the Labor-Market Outcomes of Underrepresented Groups," ILR Review, Cornell University, ILR School, vol. 67(2), pages 287-334, April.
    16. Hinrichs, Peter, 2014. "Affirmative action bans and college graduation rates," Economics of Education Review, Elsevier, vol. 42(C), pages 43-52.
    17. Sugata Bag & Suman Seth & Barnali Basak, 2023. "Heterogeneous effect of the Indian affirmative action: The role of caste certificates," Working papers 339, Centre for Development Economics, Delhi School of Economics.
    18. Borghans, Lex & ter Weel, Bas & Weinberg, Bruce A., 2005. "People People: Social Capital and the Labor-Market Outcomes of Underrepresented Groups," IZA Discussion Papers 1494, Institute of Labor Economics (IZA).
    19. Conrad Miller, 2017. "The Persistent Effect of Temporary Affirmative Action," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 152-190, July.
    20. Lex Borghans & Bas Ter Weel & Bruce A. Weinberg, 2014. "People Skills and the Labor-Market Outcomes of Underrepresented Groups," ILR Review, Cornell University, ILR School, vol. 67(2), pages 287-334, April.
    21. Cassan, Guilhem, 2019. "Affirmative action, education and gender: Evidence from India," Journal of Development Economics, Elsevier, vol. 136(C), pages 51-70.

    More about this item

    Keywords

    consumption expenditure; Scheduled Tribes; Scheduled Castes; employment quota; public sector; India;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp13847. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.