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Does Political Affirmative Action Work, and for Whom? Theory and Evidence on India’s Scheduled Areas

In: Handbook on Economics of Discrimination and Affirmative Action

Author

Listed:
  • Saad Gulzar

    (Princeton University)

  • Nicholas Haas

    (Aarhus University)

  • Benjamin Pasquale

Abstract

Does political affirmative action undermine or promote development? We present the first systematic analysis of Scheduled Areas in India, home to 100 million, where local political office is reserved for the historically disadvantaged Scheduled Tribes. A newly constructed dataset of 217,000 villages allows us to probe conflicting hypotheses on the implementation of the world’s largest workfare program, the National Rural Employment Guarantee Scheme. We find that reservations deliver no worse overall outcomes, that there are large gains for targeted minorities, and that these gains come at the cost of the relatively privileged, not other minorities. We also find improvements in other pro-poor programs, including a rural roads program and general public goods. Reservations more closely align benefits to each group’s population share, allaying concerns of overcompensation for inequalities. Contrary to the expectations of skeptics, results indicate that affirmative action can redistribute both political and economic power without hindering overall development.

Suggested Citation

  • Saad Gulzar & Nicholas Haas & Benjamin Pasquale, 2023. "Does Political Affirmative Action Work, and for Whom? Theory and Evidence on India’s Scheduled Areas," Springer Books, in: Ashwini Deshpande (ed.), Handbook on Economics of Discrimination and Affirmative Action, chapter 32, pages 729-759, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-4166-5_51
    DOI: 10.1007/978-981-19-4166-5_51
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