Palash Biswas

http://troubledgalaxydetroyeddreams.blogspot.com/

2001  2003
192  2500

“This initiative has come at the right time,” said Symposium organizer, elected member and speaker of Bihar legislative assembly, Mr Uday Narayan Chaudhary. “We are aware of the devastating effects of AIDS, but we need to know more about how it spreads and what we can do about it.”
“Half of the recently elected village representatives are women. This amounts to almost 100 000 women who could play a critical role in increasing people’s awareness about HIV at the grassroots level,” he added.

Chaudhary also said that heightened awareness is a key element to reducing the social stigma associated with HIV and AIDS.

Recognizing the need for consolidated action in Bihar, the Chief Minister Shri Nitish Kumar called for strengthening the public awareness campaign and committed to expand health infrastructures at various levels in the state. He also committed to support seminars and workshops to educate more than 200 000 elected village representatives on issues of public importance such as agriculture, rural development as well as AIDS.

Supporting these initiatives, Denis Broun, UNAIDS country coordinator in India, underlined the importance of political leadership to move the response to AIDS one step further. “Facing up to the issue of AIDS and taking concrete action such as this is vital to getting ahead of the epidemic,” he said. “By creating this forum, , Bihar’s leaders have introduced a critical link that will be key to Bihar’s victory in its AIDS response.”
Econometrica, Vol. 72, No. 5 (September, 2004), 1409¡©1443

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WOMEN AS POLICY MAKERS: EVIDENCE FROM A RANDOMIZED
POLICY EXPERIMENT IN INDIA
BY RAGHABENDRA CHATTOPADHYAY AND ESTHER DUFLO1
http://www.povertyactionlab.org/papers/chattopadhyay_duflo.pdf

This paper uses political reservations for women in India to study the impact of
women¡¯s leadership on policy decisions. Since the mid-1990¡¯s, one third of Village
Council head positions in India have been randomly reserved for a woman: In these
councils only women could be elected to the position of head. Village Councils are responsible
for the provision of many local public goods in rural areas.Using a dataset we
collected on 265 Village Councils in West Bengal and Rajasthan, we compare the type
of public goods provided in reserved and unreserved Village Councils. We show that
the reservation of a council seat affects the types of public goods provided. Specifically,
leaders invest more in infrastructure that is directly relevant to the needs of their own
genders.
KEYWORDS: Gender, decentralization, affirmative action, political economy.
1. INTRODUCTION
RELATIVE TO THEIR SHARE IN THE POPULATION, women are under-represented
in all political positions. In June 2000, women represented 13.8% of
all parliament members in the world, up from 9% in 1987. Compared to economic
opportunities, education, and legal rights, political representation is the
area in which the gap between men and women has narrowed the least between
1995 and 2000 (Norris and Inglehart (2000)). Political reservations for women
are often proposed as a way to rapidly enhance women¡¯s ability to participate
in policymaking. Quotas for women in assemblies or on parties¡¯ candidate lists
are in force in the legislation of over 30 countries (World Bank (2001)), and in
the internal rules of at least one party in 12 countries of the European Union
(Norris (2001)).
Reservation policies clearly have a strong impact on women¡¯s representation,
2 and there is evidence that women and men have different policy preferences
(Lott and Kenny (1999) and Edlund and Pande (2001)). This does not
1We thank Daron Acemoglu, Abhijit Banerjee, Timothy Besley, Anne Case, Mihir Ghosh
Dastidar, Angus Deaton, Marie Lajus, Steve Levitt, Rohini Pande, and Emmanuel Saez for discussions,
Prasid Chakraborty and Mihir Ghosh Dastidar for organizing and supervising the data
collection in West Bengal, Callie Scott and Annie Duflo for organizing the data collection in
Rajasthan, Lucia Breierova, Shawn Cole, and Jonathan Robinson for excellent research assistance,
and the editor as well as four anonymous referees for very useful comments on previous
drafts. We also thank the National Institute of Health (through grant RO1HD39922-01),
Alfred P. Sloan Foundation, and the John D. and Catherine MacArthur Foundation for financial
support. Chattopadhyay thanks the Institute for Economic Development at Boston University
for its hospitality.
2See Jones (1998) for a study of the Argentinian case, and Norris (2001) for the impact of
reservation in the Labour Party in the United Kingdom. Women¡¯s representation fell from 25%
to 7% in Eastern Europe when gender quotas were eliminated during the transition from Communism
(World Bank (2001)).
1409
1410 R. CHATTOPADHYAY AND E. DUFLO
necessarily imply, however, that women¡¯s reservation has an impact on policy
decisions. In a standard median voter model (e.g., Downs (1957)), where candidates
can commit to a specific policy and have electoral motives, political
decisions reflect the preferences of the electorate. Alternatively, in a Coasian
world, even if the reservation policy increases women¡¯s bargaining power, only
transfers to women should be affected; the efficient policy choices will still be
made, and women will be compensated with direct transfers.
However, despite the importance of this issue for the design of institutions,
very little is known about the causal effect of women¡¯s representation on policy
decisions. The available evidence, based on cross-sectional comparison, is
difficult to interpret, because the fact that women are better represented in a
particular country or locality may reflect the political preferences of the group
that elects them. The correlation between policy outcomes and women¡¯s participation
then may not imply a causal effect from women¡¯s participation.3
Furthermore, even if we knew more about the causal effect of women¡¯s
representation, this knowledge would not necessarily extend to the effects
of quotas or other mechanisms to enforce greater participation of women in
the political process. Ensuring women¡¯s representation through quotas may
change the nature of political competition and thus have direct effects. For
example, it may lower the average competence in the pool of eligible candidates,
alter voter preferences for political parties, or increase the number of
politicians that are new in office.
This paper studies the policy consequences of mandated representation of
women by taking advantage of a unique experiment implemented recently in
India. In 1993, an amendment to the constitution of India required the States
both to devolve more power over expenditures to local village councils (Gram
Panchayats, henceforth GPs) and to reserve one-third of all positions of chief
(Pradhan) to women. Since then, most Indian States have had two Panchayat
elections (Bihar and Punjab had only one, in 2001 and 1998 respectively), and
at least one-third of village representatives are women in all major States except
Uttar Pradesh, where only 25% of the village representatives are women
(Chaudhuri (2003)).We conducted a detailed survey of all investments in local
public goods in a sample of villages in two districts, Birbhum in West Bengal
and Udaipur in Rajasthan, and compared investments made in reserved and
unreserved GPs. AsGPs were randomly selected to be reserved for women, differences
in investment decisions can be confidently attributed to the reserved
status of those GPs.
3For example, Dollar, Fisman, and Gatti (2001) find a negative correlation between representation
of women in parliaments and corruption. Does this mean women are less corrupt, or that
countries that are less corrupt are also more likely to elect women to parliament? Besley and
Case (2000) show that worker compensation and child support enforcement policies are more
likely to be introduced in states where there are more women in parliament, after controlling for
state and year fixed effects. But they explicitly recognize that the fraction of women in parliament
may be a proxy for women¡¯s involvement in politics, more generally.
WOMEN AS POLICY MAKERS 1411
The results suggest that reservation affects policy choices. In particular, it
affects policy decisions in ways that seem to better reflect women¡¯s preferences.
The gender preferences of men and women are proxied by the types
of formal requests brought to the GP by each gender. In West Bengal, women
complain more often than men about drinking water and roads, and there are
more investments in drinking water and roads in GPs reserved for women. In
Rajasthan, women complain more often than men about drinking water but
less often about roads, and there are more investments in water and less investment
in roads in GPs reserved for women.
We exploit specific features of the reservation legislation to further investigate
whether the effects on public good provisions can be attributed to the
gender of the Pradhan, rather than to other consequences of reserving seats.
We specifically investigate whether the results can be explained by the fact
that women are inexperienced, that they may perceive themselves as being
less likely to be re-elected, and that they tend to come from more disadvantaged
backgrounds than men. We do not find any evidence that the impact of
reservation is driven by features other than the gender of the Pradhan.
These results thus indicate that a politician¡¯s gender does influence policy
decisions. More generally, they provide new evidence on the political process.
In particular, they provide strong evidence that the identity of a decision maker
does influence policy decisions. This provides empirical support to political
economy models that seek to enrich the Downsian model (Alesina (1988),
Osborne and Slivinski (1996), and Besley and Coate (1997)). The results are
consistent with previous evidence by Levitt (1996), which shows thatU.S. Senators¡¯
votes do not reflect either the wishes of their constituency or that of their
party, and by Pande (2003), who shows that in Indian States where a larger
share of seats is reserved for minorities in the State Legislative Assembly, the
level of transfers targeted towards these minorities is also higher. Our paper
presents the advantage of being based on a randomized experiment, where
identification is entirely transparent.
The remainder of this paper proceeds as follows: Section 2 describes the
political context and the policy. Section 3 presents a simple model, based on
the ¡°citizen candidate¡± model of Osborne and Slivinski (1996) and Besley and
Coate (1997), which outlines the possible effect of the reservation system.
Section 4 discusses the data collection and the empirical strategy. Section 5
presents the central results of the paper: the difference in public goods provisions
in reserved and unreserved GPs. Section 6 presents robustness checks.
Section 7 concludes.
2. THE POLICY AND DESIGN OF THE STUDY
2.1. The Panchayat System
The Panchayat is a system of village level (Gram Panchayat), block level
(Panchayat Samiti), and district level (Zilla Parishad) councils, members of
1412 R. CHATTOPADHYAY AND E. DUFLO
which are elected by the people, and are responsible for the administration
of local public goods. Each Gram Panchayat (GP) encompasses 10,000 people
in several villages (between 5 and 15). The GPs do not have jurisdiction over
urban areas, which are administered by separate municipalities. Voters elect a
council, which then elects among its members a Pradhan (chief) and an Upa-
Pradhan (vice-chief).4 Candidates are generally nominated by political parties,
but have to be residents of the villages they represent. The council makes decisions
by majority voting (the Pradhan does not have veto power). The Pradhan,
however, is the only member of the council with a full-time appointment.
The Panchayat system has existed formally in most of the major states of
India since the early 1950¡¯s. However, in most states, the system was not an effective
body of governance until the early 1990¡¯s. Elections were not held, and
the Panchayats did not assume any active role (Ghatak and Ghatak (2002)). In
1992, the 73rd amendment to the Constitution of India established throughout
India the framework of a three-tiered Panchayat system with regular elections.
It gave the GP primary responsibility in implementing development programs,
as well as in identifying the needs of the villages under its jurisdiction. Between
1993 and 2003, all major states but two (Bihar and Punjab) have had
at least two elections. The major responsibilities of the GP are to administer
local infrastructure (public buildings, water, roads) and identify targeted
welfare recipients. The main source of financing is still the state, but most of
the money which was previously earmarked for specific uses is now allocated
through four broad schemes: The Jawhar Rozgar Yojana (JRY) for infrastructure
(irrigation, drinking water, roads, repairs of community buildings, etc.);
a small additional drinking water scheme; funds for welfare programs (widow¡¯s,
old age, and maternity pensions, etc.); and a grant for GP functioning.5 The GP
has, in principle, complete flexibility in allocating these funds. At this point, the
GP has no direct control over the appointments of government paid teachers
or health workers, but in some states (Tamil Nadu andWest Bengal, for example),
there are Panchayat-run informal schools.
The Panchayat is required to organize two meetings per year, called ¡°Gram
Samsad.¡± These are meetings of villagers and village heads in which all voters
may participate. The GP council submits the proposed budget to the Gram
Samsad, and reports on their activities in the previous six months. The GP
leader also must set up regular office hours where villagers can lodge complaints
or requests.
In West Bengal, the Left Front (communist) Government gained power in
1977 on a platformof agrarian and political reform. The major political reform
4In Rajasthan, the chief is called a Sarpanch. In this paper, we will use the terminology ¡°Pradhan¡±
for both States.
5According to the balance sheets we could collect in 40 GPs inWest Bengal, the JRY accounts
for 30% of total GP income, the drinking water scheme 5%, the welfare programs 15%, the grant
for GP functioning 33%, and the GP¡¯s own revenue for 8%. GPs can also apply for some special
schemes¡ªa housing scheme for SC/ST, for example.
WOMEN AS POLICY MAKERS 1413
was to give life to a three-tiered Panchayat electoral system. The first election
took place in 1978 and elections have taken place at five-year intervals ever
since. Thus, the system that was put into place by the 73rd Amendment all over
India was already well established inWest Bengal. Following the Amendment,
the GP was given additional responsibilities inWest Bengal. In particular, they
were entrusted to establish and administer informal education centers (called
SSK), an alternative form of education for children who do not attend school
(an instructor who is not required to have any formal qualification teaches
children three hours a day in a temporary building or outdoors).
In Rajasthan, unlike West Bengal, there was no regularly elected Panchayat
system in charge of distribution of state funds until 1995. The first election was
held in 1995, followed by a second election in 2000. Since 1995, elections and
Gram Samsads have been held regularly, and are well attended. This setting
is thus very different, with a much shorter history of democratic government.
As inWest Bengal, the Panchayat can spend money on local infrastructure, but
unlikeWest Bengal, they are not allowed to run their own schools.
2.2. Reservation for Women
In 1992, the 73rd Amendment provided that one-third of the seats in all Panchayat
councils, as well as one-third of the Pradhan positions,must be reserved
for women. Seats and Pradhan¡¯s positions were also reserved for the two disadvantaged
minorities in India, scheduled castes (SC) and scheduled tribes (ST),
in the form of mandated representation proportional to each minority¡¯s population
share in each district. Reservations for women have been implemented
in all major states except Bihar and Uttar Pradesh (which has only reserved
25% of the seats to women).
InWest Bengal, the Panchayat Constitution Rule was modified in 1993, so as
to reserve one-third of the councilor positions in each GP to women; in a third
of the villages in each GP, only women could be candidates for the position of
councilor for the area. The proportion of women elected to Panchayat councils
increased to 36% after the 1993 election. The experience was considered a disappointment,
however, because very few women (only 196 out of 3,324 GPs)
advanced to the position of Pradhan, which is the only one that yields effective
power (Kanango (1998)). To conform to the 73rd amendment, the Panchayat
Constitution Rule of West Bengal was again modified in April 1998 (Government
ofWest Bengal (1998)) to introduce reservation of Pradhan positions for
women and SC/ST. In Rajasthan, the random rotation systemwas implemented
in 1995 and in 2000 at both levels (council members and Pradhans).
In both states, a specific set of rules ensures the random selection of GPs
where the office of Pradhan was to be reserved for a woman. All GPs in a
district are ranked in consecutive order according to their serial legislative
1414 R. CHATTOPADHYAY AND E. DUFLO
number (an administrative number pre-dating this reform). They are then
ranked in three separate lists, according to whether or not the seats were reserved
for a SC, for a ST, or were unreserved (these reservations were also
chosen randomly, following a similar method). Using these lists, every third
GP starting with the first on the list is reserved for a woman Pradhan for the
first election.6
From discussions with the government officials at the Panchayat Directorate
who devised the system and district officials who implemented it in individual
districts, it appears that these instructions were successfully implemented.
More importantly, in the district we study in West Bengal, we could verify that
the policy was strictly implemented. After sorting the GPs into those reserved
for SC/ST and those not reserved, we could reconstruct the entire list of GPs
reserved for a woman by sorting all GPs by their serial number, and selecting
every third GP starting from the first in each list. This verifies that the allocation
of GPs to the reserved list was indeed random, as intended.7
Table I shows the number of female Pradhans in reserved and unreserved
GPs in both states. In both states, all Pradhans in GPs reserved for a woman
are female. In West Bengal, only 6.5% of the Pradhans are female in unreserved
GPs. In Rajasthan, only one woman was elected on an unreserved seat,
despite the fact that this was the second cycle. Women elected once due to the
reservation system were not re-elected.8
TABLE I
FRACTION OF WOMEN AMONG PRADHANS IN RESERVED
AND UNRESERVED GP
Reserved GP Unreserved GP
(1) (2)
West Bengal
Total Number 54 107
Proportion of Female Pradhans 100% 6.5%
Rajasthan
Total Number 40 60
Proportion of Female Pradhans 100% 1.7%
6For the next election, every third GP starting with the second on the list was reserved for a
woman, etc. The Panchayat Constitution Rule has actual tables indicating the ranks of the GPs
to be reserved in each election.
7We could not obtain the necessary information to perform the same exercise in Rajasthan.
However, there too, the system appears to have been correctly implemented.
8The one woman elected on an unreserved seat had not been previously elected on a reserved
seat.
WOMEN AS POLICY MAKERS 1415
3. THEORY
3.1. Model
In this section, we analyze the possible effects of the reservation policy in
a representative democracy.We use the framework developed in Osborne and
Slivinski (1996) and Besley and Coate (1997), where the elected representatives
are ¡°citizen candidates.¡± Citizen candidates cannot commit to specific
policy platforms. Once elected, politicians will try to implement their preferred
policy option.However, citizens know other citizens¡¯ preferences and can influence
the final political outcome through their choice of whom to elect. Citizens
decide whether or not to run for office by trading off the probability of being
elected (and getting to implement their favorite outcomes) against a fixed cost
of running for election.
This framework is well suited to analyzing decentralized policymaking in India
since it is reasonable to assume that citizens in a Gram Panchayat know
each other well. In addition, a rationale for reservation in favor of women
can be introduced very naturally, by recognizing that women have a much
higher cost of running for office than men. These higher costs can prevent
the participation of women in the political process in the absence of reservation;
consequently, reservations can have a real effect on the decisions taken
if women and men have different preferences over which public goods to provide.
9
Everyone is eligible to vote and to stand as a candidate. The village elects
an individual who will implement a policy, chosen in the interval [0 1]. Each
citizen has a preferred policy option ¥øi, and women and men have different
policy preferences. Specifically, we assume that women¡¯s preferences are distributed
over the interval [0W ], and men¡¯s preferences are distributed over
the interval [M1].10
As in Osborne and Slivinski (1996) and Besley and Coate (1997), the political
game has three stages. Citizens first decide whether or not to run. The cost of
running for women, ¥äw, is greater than the cost of running for men, ¥äm. This
seems to be a very realistic assumption: In rural areas in India (at least in the
two states we are studying in this paper), literate women (who can run for
9Pande (2003) develops an alternative model to analyze the possible impact of the reservation
of a share of seats to SC/ST in state legislative assemblies in India. The argument is that candidates
are fielded by political parties, where minorities are under-represented relative to their
share in the population, which in turn leads to an under-representation of SC/ST among legislators,
in the absence of reservation. The present model seems better suited to the description of
local democracy, and avoids assumptions on the objective functions of political parties.
10Women¡¯s and men¡¯s distributions can overlap¡ªthat is, we can haveM below, we do seem to observe gender-based differences in tastes for public goods, the assumption
that men¡¯s and women¡¯s preferences are neatly ordered in this linear fashion is, of course,
quite extreme. However, relaxing this assumption would not change the qualitative nature of our
results.
1416 R. CHATTOPADHYAY AND E. DUFLO
office) come from lower middle class backgrounds, where it is frowned upon
for a woman to work outside their home, let alone to campaign or serve in
public office (for example,Hindu women inUdaipur generally observe Purdah,
and keep their face covered in public). Citizens then elect a candidate (as in
Besley and Coate (1997), we will assume that voting is strategic), and finally the
policy is implemented. During a given period of time, the candidate decides
each period which decision to take. The utility of citizen i if outcome xj is
implemented is |xj  ¥øi| if citizen i was not a candidate, and |xj  ¥øi|  ¥äi
if citizen i was a candidate.
Where our model departs from the basic models by Besley and Coate and
Osborne and Slivinski is in the assumption that the policy that is finally implemented
is a mixture of the preferred policy option of the elected candidate,
and a policy option ¥ì, preferred by the local elite (as against just what the
candidate wants). This can reflect the ¡°capture¡± of decentralized government
by the local elite, modelled for example in Bardhan and Mookherkjee (2000)
and Besley and Coate (2001). An alternate, more positive view of this process
is that the elected official is subject to the control of the village assembly or
the elected council.11 Under both interpretations, it is plausible that ¥ì would
be more ¡°pro-male¡± than the median voter¡¯s preference, since the local elite
tend to be male, and men are also more likely to attend village meetings than
women. Therefore, this is what we will assume. Formally our assumption is
that the candidate¡¯s preferences are given a weight ¥á, so the policy finally implemented
by the elected citizen j is xj = ¥áwj + (1  ¥á)¥ì. This formalization
gives us an intuitive choice for the default decision, implemented if no one decides
to run.12 In this case, the decision is ¥ì, and citizen i¡¯s utility is |¥ì ¥øi|.
Initially, we will assume that ¥á is constant across elected candidates. We will
also assume that ¥ì >m, the median voter¡¯s preferred outcome. Citizens know
that the policy that will eventually be implemented will be influenced by the
lobbying process, and they take this into account when they cast their vote.
3.2. Analysis of the Model
Despite the fact that voters are completely informed and vote strategically
in this model (in particular, they correctly anticipate that the decision of the
elected citizen will reflect ex post lobbying), the outcome that is finally implementedmay
not reflect the preference of the median voter, for several reasons.
11There is evidence of both phenomena in the districts we study. First, bigger and richer villages
receive more public goods per capita than smaller villages, presumably because they have the
means to lean on the Panchayat leader. Also, in village meetings, there are instances of groups
trying to make sure they are getting the public goods they want, as well as of citizens complaining
that the allocations of goods favor politically more powerful people.
12Of course, in practice, there is always a candidate.However, it is not infrequent that Pradhans
are perceived as being a cover for someone else. There is even an expression to designate a
Pradhan who is in fact a dummy for a lobbying group: a ¡°shadow Pradhan.¡±
WOMEN AS POLICY MAKERS 1417
First, as in Besley and Coate (1997), there may be an equilibrium with two candidates
who, if elected, will implement decisions that are symmetric around the
median voter, but relatively far away from the median voter¡¯s preferred position.
With strategic voting, it may be impossible for a third candidate to enter
in the middle and win.13 Second, and specific to this model, parameters may
be such that, without reservation, there is no equilibrium where a woman is a
candidate. In this case, the outcome that will be implemented in equilibrium
will be to the right of M, the most ¡°pro-female¡± outcome preferred by a man.
Moreover, if the preferences of men and women do not overlap substantially,
if the preferences of the lobbies (or the village meeting) are sufficiently biased
towards male preferences, or if the power of the lobbies is sufficiently strong,
it is fully possible that any policy outcome will be to the right of the median
voter¡¯s preferred outcome. By inducing women to run, the reservation policy
moves to the left of the range of outcomes that can be implemented in equilibrium.
This will tend to improve women¡¯s utility, and, because the median
voter¡¯s policy may now be included in the range of policies that can be implemented
in equilibrium, this may also improve the utility of the median voter.
The intuition for this result is that the influence of the lobbies tends to moderate
women (since they start from the left of the median voter), while it makes
men more extreme.
In this section, we first analyze women¡¯s decision to run for office when there
is no reservation. We then derive the conditions under which the reservation
policy unambiguously improves the welfare of the median female voter, and
that of the median voter.
As most people who have analyzed a model of this class, we restrict the analysis
to pure strategy equilibria where no more than three candidates run. Under
mild assumptions, this also implies that there is no equilibria with more than
two candidates.14 All the proofs are in the Appendix.
The first proposition gives the conditions under which, without reservation,
women will not run.
PROPOSITION 1: If the following conditions hold, there is no equilibrium where
a woman runs in the absence of reservation:
(i) ¥äw  5  ¥äm >¥ì m;
(ii) ¥äw >m (1  ¥á)¥ì.
13Osborne and Slivinski (1996) show that this would not be true with sincere voting, which
would be defined here as voting for the person who, after the influence of the lobbying, would
implement the outcome that the citizen preferred. In this case, two candidates cannot be too far
apart.
14Formally, Besley and Coate (1997) show that there are no equilibria with exactly three candidates
if citizens abstain whenever they are indifferent between all candidates, and that Assumption
I (nonclumping) holds: For any interval I of the policy space [0 1], if there exists an
interval I of smaller length that contains the ideal point of at least one-third of the citizens, the
interval I must contain the ideal point of at least one citizen. They cannot rule out equilibria with
more than three candidates.
1418 R. CHATTOPADHYAY AND E. DUFLO
The first condition is the condition under which no woman runs unopposed.
The intuition is that when the cost of running is high for women, only women
with strong pro-women preferences will want to run. But if the cost of running
is low for a man, a man can then enter and win for sure. If the second condition
is satisfied, no woman agrees to run against a man: The two candidates
must have equal chances of winning, and thus the outcome they will implement
must be symmetric around the median voter. Under this condition, the
distance between the outcomes implemented by the two most extreme candidates
symmetric among the median voter is too small to compensate even the
most extreme woman¡¯s cost of running.
Of course, there is no guarantee that a woman would run once there is
reservation. The following lemma states the condition under which no woman
agrees to run even after reservation.
LEMMA 1: If ¥äw >¥á¥ì, there is no equilibrium in which a candidate runs under
the reservation regime.
Basically, if the cost of running is too high for women, or if the power of
elected officials is low, even the women with the most extreme preferences
would prefer the default option to what she can get by running and winning
the election. The fact that no one runs may decrease the utility of the median
voter: if a candidate had been running before the reservation, but no candidate
is running now, the outcome after reservation may be further away from the
preferences both of the female voters and the median voter. Reservation replaces
representative democracy with lobbying. Proposition 2 makes this point.
PROPOSITION 2: If ¥äw >¥á¥ì, ¥ì [¥áM +(1¥á)¥ì] ¡Ã ¥äm and ¥ì > max(m+ 5¥äm 2m  [¥áM + (1  ¥á)¥ì]), the reservation leads to an unambiguous loss in
the utility of the median voter and that of women.
By contrast, when women run because of the reservation, reservation can
lead to an unambiguous increase in women¡¯s utility and the median voter¡¯s
utility. The conditions under which this is true are given in Proposition 3.
PROPOSITION 3: If ¥ì(1¥á)¥ì ¡Ã ¥äw, and the conditions in Proposition 1 are
satisfied, so that no woman runs without a reservation system, then the reservation
system:
(i) always increases the utility of the median female voter if ¥ì  [¥áM + (1 ¥á)¥ì] ¡Ã min(m+ 5¥äw¥áW + (1 ¥á)¥ì¥ì  ¥äw);
(ii) always increases the utility of the median voter and of the median female
voter if condition (i) is satisfied and, in addition, ¥ì  [¥áM + (1  ¥á)¥ì] > 2m max((1 ¥á)¥ì (m 5¥äw)).
The first condition ensures that the most ¡°pro-woman¡± outcomes implemented
by a man are to the right of the most ¡°pro-man¡± outcomes
WOMEN AS POLICY MAKERS 1419
implemented by a woman. If this condition is not satisfied, the reservation
may or may not increase the utility of the median female voter, depending on
which equilibrium is chosen before and after the reservation system.
If the overlap between men¡¯s and women¡¯s preferences is not large, and if
lobbying power is important (but not so important that women refuse to run
altogether), reservation will unambiguously improve the median woman¡¯s utility.
The median voter¡¯s utility will also improve if the moderation induced by
electoral tactics (or the ex post lobbying) implies that the most pro-woman
outcome that can be implemented after the reservation

become easier for women to try to influence the policy process ex post (by lobbying
or by attending the meetings). This would move ¥ì to the left, and would
reinforce the results in the previous section: women¡¯s reservation will move
policy in a pro-woman direction.
Second, it assumes that all candidates have the same ability to impose their
preferred policies (what we call ¥á). Suppose we now allow ¥á to differ across
people. It is easy to see that in this case the only women who will run before
the reservation policies will tend to be strong women (high ¥á). Further,
men running before the reservation policies will tend to be strong men (to be
elected, they have to be strong enough for the outcomes they implement to
be reasonably close to what the median voter wants, even after lobbying). After
the reservation, however, relatively weak women with a strong pro-women
bias are as likely to be candidates as strong women with more moderate preferences,
and both will implement similar policies. Candidates¡¯ characteristics
are thus endogenous to the system of reservation; controlling for endogenous
characteristics without controlling for preferences (which are unobserved) may
therefore lead to biased estimates of the effect of the reservation policy. In
specification checks, we will nevertheless be able to control for differences in
some of these characteristics by using exogenous variation in candidates¡¯ characteristics
generated by the reservation policies.
Third, the model ignores many other possible effects of the reservation system.
In particular, it does not consider the possibility of strategic behavior on
the part of the elected official, which would occur if there was a future election.
Thus, it ignores possible effects of the model on incentives, which would arise
naturally if we embedded this model in a several-period model. In this model,
when Proposition 1 holds, women will return to not running when their GPs
rotate away from the set of reserved GPs. They thus face different incentives
than men who will be allowed to run again. On the other hand, men who are
elected on seats that are reserved in the next election face a term limit.We will
present estimates that directly control for different dynamic incentives, using
exogenous variation generated by rotation in the reservation system.
3.3. Testing the Empirical Predictions
The most robust prediction of the model, which sets it in contrast with a
Downsian or Coasian model of the political process, or with a model in which
the Panchayat is entirely directed by the bureaucracy, is that policy outcomes
are likely to differ in GPs that are reserved for women. To test this, we will
simply compare the type of goods provided in reserved and unreserved areas
and perform robustness checks to confirm that the difference seems to be due
to the gender of the reserved Pradhans.
More specifically, the model predicts that, in some cases, policy outcomes
will be closer to what women want than to what men want. To test this feature
of the model, we need measures of the average preferences of women and
WOMEN AS POLICY MAKERS 1421
men. One possible approach would be to derive women¡¯s and men¡¯s preferences
from a model of gender roles in the household. If the households are not
unitary and cannot commit to excluding the policy environment in their bargaining,
women and men will prefer policies that are likely to affect their bargaining
power or the price of the goods they consume, and thus have different
policy preferences. Women will thus prefer programs that increase women¡¯s
opportunity (such as public works programs where they can be employed) or
their productivity on their tasks (such as having a drinking water source next
to their house), while men will prefer programs that improve men¡¯s opportunity
and productivity. This is the approach in Foster and Rosenzweig (2002),
who construct a model that predicts the preferences of the poor versus the
rich, and then test when public goods allocation better reflects the needs of
the poor than the needs of the rich. Another approach would be to ask men
and women what their preferences are, an approach often conducted in political
science. This approach has the drawback that individuals may be reporting
socially acceptable preferences.
The approach we use here is to use the data on formal requests and complaints
that are brought to the Pradhan. Since complaining is costly (the
individual has to come to the GP office), the complaints are a reasonable
measure of the preferences of the individuals, if the individuals assume that
complaining will have an effect. A simple way of integrating the possibility
of costly communication into our model is to build it into the lobbying outcome
¥ì, so far assumed to be exogenously given.
Specifically, assume that the policy the Pradhan is implementing is in fact a
series of binary policy decisions (a choice between two goods). Before every
decision, a villager chosen at random gets a chance to convey to the leader his
preference over the choice that the village faces in this specific period. Assume
that villagers cannot lie. If a villager chooses to speak, he has to face a cost bi,
which differs across individuals. If the leader received no signal, the probability
that he chooses to implement 1 is a weighted average of his own preferred
policy (with a weight ¥á) and his prior belief of what the villagers¡¯ preferred
policy is. If the leader received a signal, his prior will be influenced by the
signal. Specifically, assume the leader¡¯s prior is .5, and that he gives a weight ¥â
to his prior, and 1¥â to the signal. Then an individual i will choose to convey
his signal if and only if 5(1 ¥á)(1 ¥â) ¡Ã bi.
In this very simple model, the probability of complaining depends only on
the cost of complaining for an individual, not on the signal received or on the
intensity of the individual¡¯s preferences (which only predicts how likely it is
that the individual will prefer one of the outcomes in a specific period). Thus,
the frequency of complaints of a specific type among a group of people is an
unbiased estimate of the underlying distribution of preferences in this group.
In practice, we do not observe 0 or 1 signals, but instead a series of complaints
about different types of goods (drinking water, roads, irrigation, schools, etc.).
If in every period, the Pradhan must decide between two goods and the individual
who gets a chance to express his opinion can request one or the other
1422 R. CHATTOPADHYAY AND E. DUFLO
or none, the frequency at which a good appears is an unbiased estimate of the
frequency at which this good is preferred to every other good (weighted by the
probability that a pair of goods appears together). The difference
Di =  nw
i
Nw
nm
i
Nm
is thus a measure of the strength of the difference between women¡¯s and men¡¯s
preferences for a particular good and the average
Si =
1
2 nw
i
Nw +
nm
i
Nm
is a measure of the strength of the preference in the aggregate population (i.e.,
men and women together) for the good, if we assume that there is an equal
share of men and women.
In thismodel,Di and Si are not themselves affected by the reservation policy.
Of course, this model might be too simple, and in general, they may themselves
be outcomes of the reservation policy. If people report their preference ¥øi (instead
of a discrete number) to the Pradhan, the distribution of who decides to
complain will depend both on the preferences of the Pradhan, as well as on the
preferences of the individual who gets a chance to communicate in a given period.
The higher the cost, the more polarized the preferences will be that the
request will reflect. Analyzing this communication game is beyond the scope
of this paper and is the subject of Banerjee and Somanathan (2001). If women
have a higher cost of speaking than men, for example, women¡¯s complaints
will thus be more biased towards extreme preferences.16 Men may express an
opinion on just about anything, while women will speak only about relevant
trade-offs. If there are specific goods that are on average more important,
women¡¯s complaintsmay then be more skewed towards these goods than men¡¯s
complaints. To this extent, Di measures women¡¯s preferences with error, which
should attenuate the results. The simplifying assumption (that the nature of
the complaint does not depend on the intensity of preferences) is, however,
testable if the cost of complaining is affected by reservation (we will show it is,
since there are manymore complaints by women in reserved GPs). In this case,
if the assumption is not satisfied, there will be a difference in the frequency of
requests for the different types of investments in reserved and unreserved GPs.
In the model, allocations are more closely aligned to women¡¯s needs in
reserved GPs because of the selection of women candidates and potentially
because of the reduction in the cost of speaking for women (which moves
16Women are indeed likely to have a higher cost of complaining in this context, given the
social norms that limit their mobility (and hence the possibility of attending meetings, if they
are conducted at night, for example) and the conditions under which they can speak to a man.
Indeed, we will show that women are less likely to attend village meetings then men.
WOMEN AS POLICY MAKERS 1423
¥ì to the left), but not because women are more responsive to the complaints
of women (or to complaints in general). This differentiates it from a model
where women make different decisions because they are more responsive to
women¡¯s complaints, more altruistic¡ªas the experimental literature suggests
(e.g., Eckel and Grossman (1998))¡ªless corrupt (Dollar, Fisman, and Gatti
(2001)), on their best behavior because they know they are part of a social
experiment, or simply more susceptible to lobbying. To test this, we will test
whether, in reserved GPs, the Pradhan reacts more to the specific complaints
expressed in this village (by women, in particular) than in unreserved GPs.
4. DATA COLLECTION AND EMPIRICAL STRATEGY
4.1. Data Collection
We collected data in two locations: Birbhum inWest Bengal and Udaipur in
Rajasthan.
In the summer of 2000, we conducted a survey of all GPs in the district of
Birbhum,West Bengal. Birbhum is located in the western part ofWest Bengal,
about 125 miles fromthe state capital, Calcutta. At the time of the 1991 census,
it had a population of 2.56 million. Agriculture is the main economic activity,
and rice is the main crop cultivated. The male and female literacy rates were
50% and 37%, respectively. The district is known to have a relatively wellfunctioning
Panchayat system.
There are 166 GPs in Birbhum, of which five were reserved for pre-testing,
leaving 161 GPs in our study. Table II shows the means of the most relevant village
variables collected by the 1991 census of India in reserved and unreserved
GPs, and their differences. As expected, given the random selection of GPs,
there are no significant differences between reserved and unreserved GPs, and
the differences are jointly insignificant. Note that very few villages (3% among
the unreserved GPs) have tap water, the most common sources of drinking
water being hand-pumps and tube-wells. Most villages are accessible only by a
dirt road. Ninety-one percent of villages have a primary school, but very few
have any other type of school. Irrigation is important: 43% of the cultivated
land is irrigated, with at least some land being irrigated in all villages. Very few
villages (8%) have any public health facility.
We collected the data in two stages. First, we conducted an interview with
the GP Pradhan.We asked each one a set of questions about his or her family
background, education, previous political experience, and political ambitions,
as well as a set of questions about the activities of the GP since his or her
election in May 1998 (with support from written records). We then completed
a survey of three villages in the GP: Two villages randomly selected in each
GP, as well as the village in which the GP Pradhan resides. During the village
interview, we drew a resource map of the village with a group of 10 to
20 villagers. The map featured all the available infrastructure in the village,
and we asked whether each of the available equipment items had been built
1424 R. CHATTOPADHYAY AND E. DUFLO
TABLE II
VILLAGE CHARACTERISTICS IN RESERVED AND UNSERVED GP, 1991 CENSUS
West Bengal Rajasthan
Mean, Reserved GP Mean, Unreserved GP Difference Mean, Reserved GP Mean, Unreserved GP Difference
Dependent Variables (1) (2) (3) (4) (5) (6)
Total Population 974 1022 49 1249 1564 315
(60) (46) (75) (123) (157) (212)
Female Literacy Rate 35 34 01 05 05 00
(01) (01) (01) (01) (01) (01)
Male Literacy Rate 57 58 01 28 26 03
(01) (01) (01) (02) (02) (03)
% Cultivated Land that Is Irrigated 45 43 02 05 07 02
(03) (02) (04) (01) (01) (02)
Dirt Road 92 91 01 40 52 11
(02) (01) (02) (08) (07) (10)
Metal Road 18 15 03 31 34 04
(03) (02) (03) (07) (06) (10)
Bus Stop or Train Station 31 26 05 40 43 03
(04) (02) (04) (08) (07) (10)
Number of Public Health Facilities 06 08 02 29 19 10
(01) (01) (02) (08) (06) (10)
Tube Well Is Available 05 07 02 02 03 01
(03) (02) (07) (02) (02) (03)
Handpump Is Available 84 88 04 90 97 06
(04) (03) (05) (05) (02) (05)
Wells 44 47 02 93 91 01
(07) (04) (08) (04) (04) (06)
Tap Water 05 03 01 12 09 03
(03) (02) (03) (05) (04) (06)
Number of Primary Schools 95 91 04 93 116 23
(07) (03) (08) (09) (10) (15)
Number of Middle Schools 05 05 00 43 33 10
(01) (01) (01) (08) (07) (10)
Number of High Schools 09 10 01 14 07 07
(01) (01) (02) (06) (04) (07)
F-Statistics: Difference Jointly Significant 93 154
(p-value) (53) (11)
Notes: 1. There are 2120 observations in the West Bengal regressions, and 100 in the Rajasthan regressions. 2. Standard errors, corrected for clustering at the GP level in the
West Bengal regressions, are in parentheses.
WOMEN AS POLICY MAKERS 1425
or repaired since May 1998. Previous experience of one of the authors, as well
as experimentation during the pre-testing period, suggested that this method
yields extremely accurate information about the village.We then conducted an
additional interview with the most active participants of the mapping exercise,
in which we asked in more detail about investments in various public goods.
We also collected minutes of the village meetings, and asked whether women
and men of the village had expressed complaints or requests to the GP in the
previous six months. For all outcomes for which it was possible, we collected
the same information at both the GP level and at the village level. The village
level information is likely to be more reliable, because it is not provided by the
Pradhan, and because it was easy for villagers to recall investments made in
their village in the previous two years. However, the information given by the
GP Pradhan refers to investment in the entire GP, and is thus free from sampling
error. Therefore, when an outcome is available at both levels, we perform
the analysis separately for both and compare the results.
Between August 2002 and December 2002 (after a first draft of this paper
was completed), we collected the same village-level data (there was no Pradhan
interview) in 100 hamlets in Udaipur, Rajasthan, chosen randomly from a
subset of villag