The impact of employment quotas on the economic lives of disadvantaged minorities in India

Nishith Prakash

Journal of Economic Behavior & Organization, 2020, vol. 180, issue C, 494-509

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.

Keywords: Employment quota; Scheduled Castes; Scheduled Tribes; Consumption expenditure; Public sector; India (search for similar items in EconPapers)
JEL-codes: H40 J21 J31 J45 O10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:180:y:2020:i:c:p:494-509

DOI: 10.1016/j.jebo.2020.10.017

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