Professor Prakash publishes in Journal of Economics Behavior & Organization

Professor Prakash publishes his paper on “Impact of Affirmative Action in Public Sector Employment on Lives of Disadvantaged Minorities in India” in Journal of Economics Behavior & Organization.

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

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.