The Spillover Effects of Affirmative Action on Competitiveness and Unethical Behavior.

Summary 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 enter tournaments in the presence of Affirmative Action policies remain competitive 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 substantially increase the confidence and the competitiveness of the backward caste members. However, we find no spillover effect on confidence and competitiveness once Affirmative Action is withdrawn: any gain in competitiveness due to the policy is then entirely wiped out. Furthermore, the strong existing bias of the dominant category against the backward category is not significantly aggravated by Affirmative Action, except when individuals learn that they have lost the previous competition.