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Does Employment Quota Explain Occupational Choice Among Disadvantaged Groups? A Natural Experiment from India

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  • Prakash, Nishith
  • Howard, Larry

Abstract

This paper examines the effect of a federally-mandated public sector employment quota policy for minorities on their occupational choice. We utilize multiple logit models to estimate the effect of the policy on the choice between a high, middle, or low-skill public sector occupation during the 1980s and 1990s. The main findings are, first, the policy has a significant effect on the choice of occupation for both groups. The policy increases the probability of the scheduled caste group choosing high-skill occupations and decreases the probability of choosing middle-skill occupations. In contrast, the policy decreases the probability of the scheduled tribe group choosing high-skill occupations and increases their probability of choosing low-skill occupations. Second, the influence of the policy is interrelated with an individual's years of schooling. Third, we find evidence of employment quota externalities in that a policy targeted at one group affects the occupational choice of the other group. Overall, the results suggest that federally-mandated employment quotas do change occupational choice for the target disadvantaged groups and contribute to their improved socio-economic standing.

Suggested Citation

  • Prakash, Nishith & Howard, Larry, 2008. "Does Employment Quota Explain Occupational Choice Among Disadvantaged Groups? A Natural Experiment from India," MPRA Paper 13573, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:13573
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    File URL: https://mpra.ub.uni-muenchen.de/13573/1/MPRA_paper_13573.pdf
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    References listed on IDEAS

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    1. Boskin, Michael J, 1974. "A Conditional Logit Model of Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 389-398, Part I, M.
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    Cited by:

    1. A Aggarwal & R Freguglia & G Johnes & G Spricigo, 2011. "Education and labour market outcomes : evidence from India," Working Papers 615663, Lancaster University Management School, Economics Department.

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    More about this item

    Keywords

    Occupational choice; Skill; Caste; India;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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