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The Redistributive Effects of Political Reservation for Minorities: Evidence from India

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  • Aimee Chin

    ()
    (University of Houston & NBER)

  • Nishith Prakash

    ()
    (Dartmouth College, Institute for the Study of Labor (IZA) & Centre for Research and Analysis of Migration (CReAM))

Abstract

We examine the impact of political reservation for disadvantaged minority groups on poverty. To address the concern that political reservation is endogenous in the relationship between poverty and reservation, we take advantage of the state-time variation in reservation in state legislative assemblies in India that arises from national policies that cause reservations to be revised and the time lags with which the revised reservations are implemented due to the timing of state elections. Using data on sixteen major Indian states for the period 1960-1992, we find that increasing the share of seats reserved for Scheduled Tribes significantly reduces poverty while increasing the share of seats reserved for Scheduled Castes has no impact on poverty. Political reservation for Scheduled Tribes has a greater effect on rural poverty than urban poverty, and appears to benefit people near the poverty line as well as those far below it.

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Bibliographic Info

Paper provided by Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London in its series CReAM Discussion Paper Series with number 1003.

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Date of creation: Mar 2010
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Handle: RePEc:crm:wpaper:1003

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Keywords: Affirmative Action; Poverty; Minorities; India;

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References

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  1. Nishith Prakash, 2010. "Improving the Labor Market Outcomes of Minorities: The Role of Employment Quota," Working papers 2012-32, University of Connecticut, Department of Economics.
  2. Timothy Besley & Robin Burgess, 2000. "Land Reform, Poverty Reduction, And Growth: Evidence From India," The Quarterly Journal of Economics, MIT Press, vol. 115(2), pages 389-430, May.
  3. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  4. 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.
  5. Khemani, Stuti, 2004. "Political cycles in a developing economy: effect of elections in the Indian States," Journal of Development Economics, Elsevier, vol. 73(1), pages 125-154, February.
  6. Robin Burgess & Rohini Pande, 2004. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," The Centre for Market and Public Organisation 04/104, Department of Economics, University of Bristol, UK.
  7. Raghabendra Chattopadhyay & Esther Duflo, 2004. "Women as policy makers: Evidence from a randomized policy experiment in india," Framed Field Experiments 00224, The Field Experiments Website.
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  11. Banerjee, Abhijit & Somanathan, Rohini, 2007. "The political economy of public goods: Some evidence from India," Journal of Development Economics, Elsevier, vol. 82(2), pages 287-314, March.
  12. Bardhan Pranab K. & Mookherjee Dilip & Parra Torrado Monica, 2010. "Impact of Political Reservations in West Bengal Local Governments on Anti-Poverty Targeting," Journal of Globalization and Development, De Gruyter, vol. 1(1), pages 1-38, January.
  13. Angus Deaton & Jean Dreze, 2002. "Poverty and Inequality in India: A Re-Examination," Working Papers 184, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  14. Esther Duflo, 2005. "Why Political Reservations?," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 668-678, 04/05.
  15. Marianne Bertrand & Rema Hanna & Sendhil Mullainathan, 2008. "Affirmative Action in Education: Evidence From Engineering College Admissions in India," NBER Working Papers 13926, National Bureau of Economic Research, Inc.
  16. Chen, Shaohua & Ravallion, Martin, 2008. "The developing world is poorer than we thought, but no less successful in the fight against poverty," Policy Research Working Paper Series 4703, The World Bank.
  17. Timothy Besley & Rohini Pande & Lupin Rahman & Vijayendra Rao, 2004. "The Politics of Public Good Provision: Evidence from Indian Local Governments," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 416-426, 04/05.
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  21. Khemani, Stuti, 2000. "Political cycles in a developing economy - effect of elections in Indian States," Policy Research Working Paper Series 2454, The World Bank.
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Citations

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Cited by:
  1. Mori, Yuko & Kurosaki, Takashi, 2013. "Does Political Reservation Affect Voting Behavior? Empirical Evidence from India," CEI Working Paper Series 2012-09, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
  2. Azam, Mehtabul & Prakash, Nishith, 2010. "A Distributional Analysis of the Public-Private Wage Differential in India," IZA Discussion Papers 5132, Institute for the Study of Labor (IZA).
  3. Kumar, Sunil Mitra, 2013. "Does Access to Formal Agricultural Credit Depend on Caste?," World Development, Elsevier, vol. 43(C), pages 315-328.
  4. Maria De Paola & Vincenzo Scoppa & Marco Alberto De Benedetto, 2012. "The Impact of Gender Quotas on Electoral Participation: Evidence from Italian Municipalities," Working Papers 201206, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  5. Kumar Das, Pranab & Kar, Saibal & Kayal, Madhumanti, 2011. "Religious Minorities and Provision of Public Goods: Evidence from Rural West Bengal," IZA Discussion Papers 6154, Institute for the Study of Labor (IZA).
  6. Tandon, Sharad, 2012. "Election Outcomes and Food Security: Evidence from Consumption of Scheduled Castes and Tribes in India," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124414, Agricultural and Applied Economics Association.
  7. Larry L. Howard & Nishith Prakash, 2011. "Do Employment Quotas Explain the Occupational Choices of Disadvantaged Minorities in India?," Working papers 2012-31, University of Connecticut, Department of Economics.
  8. Juan Camilo Cárdenas & Hugo Ñopo & Jorge Luis Castañeda, 2012. "Equidad en la Diferencia: Políticas para la Movilidad Social de Grupos de Identidad. Misión de Movilidad Social y Equidad," DOCUMENTOS CEDE 010319, UNIVERSIDAD DE LOS ANDES-CEDE.
  9. Santosh Kumar & Nishith Prakash, 2012. "Political Decentralization, Women's Reservation and Child Health Outcomes: A Case Study of Rural Bihar," Working papers 2012-18, University of Connecticut, Department of Economics.

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