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The Spillover Effects of Affirmative Action on Competitiveness and Unethical Behavior

Author

Listed:
  • Ritwik Banerjee

    (Indian Institute of Management Bangalore, Bannerghatta Main Road, Bilekahalli, Bengaluru, Karnataka 560076 India)

  • Nabanita Datta Gupta

    (Department of Economics and Business Economics, Aarhus University and IZA, Bonn. Fuglesangs Allé 4, 8210 Aarhus V, Denmark)

  • Marie Claire Villeval

    (Univ Lyon, GATE L-SE UMR 5824, F-69342 Lyon, France)

Abstract
We conduct an artefactual field experiment to examine various spillover effects of Affirmative Action policies in the context of castes in India. We test a) if individuals who compete in the presence of Affirmative Action policies remain competitive in the same proportion after the policy has been removed, and b) whether having been exposed to the policy generates unethical behavior and spite against subjects from the category who has benefited from the policy. We find that these policies increase substantially the confidence of the lower caste members and motivate them to choose significantly more frequently a tournament payment scheme. However, we find no spillover effect on confidence and competitiveness once Affirmative Action is withdrawn: any lower caste’s gain in competitiveness due to the policy is then entirely wiped out. Furthermore, the strong existing bias of the dominant caste against the lower caste is not significantly aggravated by Affirmative Action.

Suggested Citation

  • Ritwik Banerjee & Nabanita Datta Gupta & Marie Claire Villeval, 2016. "The Spillover Effects of Affirmative Action on Competitiveness and Unethical Behavior," Working Papers 1634, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    • Handle: RePEc:gat:wpaper:1634
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    More about this item

    Keywords

    Affirmative Action; castes; competitiveness; unethical behavior; field experiment;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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