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Improving the Labor Market Outcomes of Minorities: The Role of Employment Quota

  • Prakash, Nishith

The world's biggest and arguably most aggressive form of employment based affirmative action policy for minorities exists in India. This paper exploits the institutional features of Indian mandated employment quota policy to examine its effect on minorities' [scheduled castes (SCs) and scheduled tribes (STs)] labor market outcomes. My best estimate of the effect of 1- percent increase in employment quota for SCs increases their probability of finding a salaried job by 0.9- percentage points. This effect varies by gender and location. The less educated SCs experienced increase in their consumption expenditure. I do not find similar effects for the STs.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 11010.

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Date of creation: Aug 2008
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Handle: RePEc:pra:mprapa:11010
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  1. 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.
  2. Esther Duflo & Raghabendra Chattopadhyay, 2004. "Women as policy makers: Evidence from a randomized policy experiment in india," Framed Field Experiments 00224, The Field Experiments Website.
  3. Charles Brown, 1981. "Black-White Earnings Ratios Since the Civil Rights Act of 1964: The Importance of Labor Market Dropouts," NBER Working Papers 0617, National Bureau of Economic Research, Inc.
  4. H. Holzer & D. Neumark, . "Are affirmative action hires less qualified? Evidence from employer-employee data on new hires," Institute for Research on Poverty Discussion Papers 1113-96, University of Wisconsin Institute for Research on Poverty.
  5. Coate, S. & Loury, G.C., 1992. "Will Affirmative Action Policies Eliminate Negative Stereotypes?," Papers 3, Boston University - Department of Economics.
  6. Harry Holzer & David Neumark, 1999. "Assessing Affirmative Action," NBER Working Papers 7323, National Bureau of Economic Research, Inc.
  7. 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.
  8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
  9. Jonathan S. Leonard, 1984. "Affirmative Action as Earnings Redistribution: The Targeting of Compliance Reviews," NBER Working Papers 1328, National Bureau of Economic Research, Inc.
  10. John J. Donohue III & James Heckman, 1991. "Continuous Versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," NBER Working Papers 3894, National Bureau of Economic Research, Inc.
  11. Leonard, Jonathan S, 1984. "The Impact of Affirmative Action on Employment," Journal of Labor Economics, University of Chicago Press, vol. 2(4), pages 439-63, October.
  12. 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.
  13. 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.
  14. Welch, Finis, 1981. "Affirmative Action and Its Enforcement," American Economic Review, American Economic Association, vol. 71(2), pages 127-33, May.
  15. 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.
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