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.
