Affirmative Action and Productivity in the Indian Railways

Critics of affirmative action policies often claim that increasing the representation of members of marginalized communities in jobs comes at the cost of reduced productive efficiency. This paper reports on a systematic empirical analysis of productivity in the Indian Railways - the world’s largest employer subject to affirmative action - in which we examined whether or not higher proportions of affirmative action beneficiaries in employment reduce efficiency in the railway system. We found no evidence for such an effect; and some of our results provide tentative support for the claim that greater labor force diversity boosts productivity.