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

51 Pages Posted: 15 Oct 2009

See all articles by Nishith Prakash

Nishith Prakash

University of Connecticut; Institute for the Study of Labor


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 federally mandated employment quota policy to examine its effect on labor market outcomes of two distinct minority groups. My main finding is that employment quota significantly increases the probability of acquiring a salaried job for one minority group and not the other. Their improved employment outcome is also reflected in their higher household consumption expenditure. Overall, the effects vary within each minority group by education, gender, and geographical location.

Keywords: caste, employment, wage differentials, public sector, India

JEL Classification: H40, J21, J31, J45, O10

Suggested Citation

Prakash, Nishith, Improving the Labor Market Outcomes of Minorities: The Role of Employment Quota. IZA Discussion Paper No. 4386. Available at SSRN:

Nishith Prakash (Contact Author)

University of Connecticut ( email )

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

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Institute for the Study of Labor ( email )

P.O. Box 7240
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