Diverse group climbing stairs towards a bright sky symbolizing affirmative action and equal opportunity.

Leveling the Playing Field: How Affirmative Action Can Truly Work

Reese Marlowe in Politics & Policy August 2025 • 4 min read.

"A New Approach to Implementing Fair Policies in Heterogeneous Environments."

For decades, the concept of affirmative action has sparked passionate debate, particularly in countries striving to balance historical injustices with the principles of equal opportunity. At the heart of this debate lies a fundamental question: How can societies design policies that effectively promote inclusivity without inadvertently creating new forms of inequity?

India, a nation celebrated for its vibrant democracy and yet challenged by deep-rooted social hierarchies, presents a compelling case study. The country's constitution enshrines affirmative action through reservation policies, intended to uplift marginalized groups. However, the implementation of these policies has been fraught with legal battles, inconsistent rulings, and ongoing societal tensions.

Now, new research offers a promising path forward. Economists Tayfun Sönmez and M. Bumin Yenmez propose a novel mechanism, grounded in market design principles, that seeks to overcome the limitations of existing affirmative action frameworks. Their work focuses on creating a system that is not only legally sound but also genuinely fair and effective in promoting social mobility.

Understanding India's Reservation System

Diverse group climbing stairs towards a bright sky symbolizing affirmative action and equal opportunity.

India's affirmative action policies, often referred to as "reservation policies," are designed to ensure representation for disadvantaged groups in government jobs and educational institutions. These policies operate through two primary mechanisms: vertical reservations (VR) and horizontal reservations (HR). VR aims to reserve a percentage of positions for specific groups, such as Scheduled Castes, Scheduled Tribes and Other Backward Classes. HR provides additional safeguards for groups like women or people with disabilities, operating within each vertical category.

This dual-layered approach is intended to create a comprehensive system of equity, but its complexity has led to significant challenges. When VR and HR policies intersect, particularly in environments where positions vary in desirability, ambiguities arise, and traditional implementation methods often fall short.

Homogeneity: Traditional policies assume all positions are identical, which is rarely the case in real-world scenarios.
Stand-alone implementation: Existing frameworks often treat VR and HR as separate entities, failing to account for their interactions.
Non-overlapping protected groups: Policies struggle to address situations where individuals belong to multiple protected categories.

To address these shortcomings, Sönmez and Yenmez build upon a series of legal precedents and economic models to propose a new mechanism known as the "two-step meritorious horizontal deferred acceptance" (2SMH-DA) system.

A Path Towards True Equity

The implementation of affirmative action policies is not merely a legal or economic exercise; it is a reflection of a society's commitment to justice and inclusion. By embracing innovative solutions like the 2SMH-DA mechanism, nations can move closer to realizing the promise of equal opportunity for all, fostering a more equitable and prosperous future.

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This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2203.01483,

Title: Constitutional Implementation Of Affirmative Action Policies In India

Subject: econ.th

Authors: Tayfun Sonmez, M. Bumin Yenmez

Published: 02-03-2022

Everything You Need To Know

What are India's Reservation policies and how do they function?

India's affirmative action policies, known as Reservation policies, aim to provide representation for disadvantaged groups in government jobs and educational institutions. These policies operate through two primary mechanisms: Vertical Reservations (VR) and Horizontal Reservations (HR). VR reserves a percentage of positions for specific groups like Scheduled Castes, Scheduled Tribes, and Other Backward Classes. HR provides additional safeguards for groups like women or people with disabilities, operating within each vertical category. The dual-layered approach intends to create equity, but its complexity has led to challenges in implementation.

What are the key challenges in implementing the current Reservation policies in India?

The implementation of India's current Reservation policies faces several challenges. Traditional policies often assume Homogeneity, treating all positions as identical, which is rarely the case. Existing frameworks frequently treat VR and HR as separate entities, neglecting their interactions. Furthermore, these policies struggle to address situations where individuals belong to multiple protected categories, leading to ambiguities and inconsistencies in application.

How does the "two-step meritorious horizontal deferred acceptance" (2SMH-DA) system address the shortcomings of existing affirmative action frameworks?

The 2SMH-DA system, proposed by economists Tayfun Sönmez and M. Bumin Yenmez, aims to overcome limitations in current affirmative action frameworks. This mechanism is designed to address the shortcomings of existing methods. By building on legal precedents and economic models, 2SMH-DA seeks to create a system that is not only legally sound but also genuinely fair and effective in promoting social mobility. It is a more nuanced approach that considers the varied nature of positions and the interactions between different reservation categories.

Can you explain the difference between Vertical Reservations (VR) and Horizontal Reservations (HR) in the context of India's affirmative action?

In India's affirmative action framework, VR and HR serve different purposes. VR reserves a specific percentage of positions for particular groups like Scheduled Castes, Scheduled Tribes, and Other Backward Classes. This aims to ensure their representation in various sectors. HR, on the other hand, provides additional safeguards for groups like women or people with disabilities. HR operates within each vertical category, offering extra protection to these groups. The intersection of VR and HR can lead to complex scenarios, especially where the desirability of positions varies, highlighting the need for a more sophisticated approach.

What are the implications of embracing innovative solutions like the 2SMH-DA mechanism for achieving equal opportunity?

Embracing innovative solutions like the 2SMH-DA mechanism signifies a society's commitment to justice and inclusion. It moves nations closer to realizing the promise of equal opportunity for all. The implementation of such mechanisms fosters a more equitable and prosperous future by providing a framework that addresses the complexities of affirmative action. This ensures that policies are not only legally sound but also genuinely fair and effective in promoting social mobility for all members of society, especially in heterogeneous environments.