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Diversity and Affirmative Action in Higher Education

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  • DENNIS EPPLE
  • RICHARD ROMANO
  • HOLGER SIEG

Abstract

We examine the practice of affirmative action and consequences of its proscription on the admission and tuition policies of institutions of higher education in a general equilibrium framework. Colleges are differentiated ex ante by endowments and compete for students that differ by race, household income, and academic qualification. Proscription of affirmative action requires that admission and tuition policies are race blind. Colleges then use the informational content about race in income and academic qualification in reformulating their optimal policies. We find that minority students pay lower tuition and attend higher-quality schools because of affirmative action. A ban of affirmative action will lead to a substantial decline of minority students in the top-tier colleges. Copyright � 2008 Wiley Periodicals, Inc..

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Bibliographic Info

Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.

Volume (Year): 10 (2008)
Issue (Month): 4 (08)
Pages: 475-501

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Handle: RePEc:bla:jpbect:v:10:y:2008:i:4:p:475-501

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Cited by:
  1. Peter Arcidiacono & Esteban Aucejo & Patrick Coate & V. Joseph Hotz, 2012. "Affirmative Action and University Fit: Evidence from Proposition 209," NBER Working Papers 18523, National Bureau of Economic Research, Inc.
  2. Pastine, Ivan & Pastine, Tuvana, 2012. "Student incentives and preferential treatment in college admissions," Economics of Education Review, Elsevier, vol. 31(1), pages 123-130.
  3. Arcidiacono, Peter & Khan, Shakeeb & Vigdor, Jacob L., 2011. "Representation versus assimilation: How do preferences in college admissions affect social interactions?," Journal of Public Economics, Elsevier, vol. 95(1), pages 1-15.
  4. Peter Arcidiacono & Esteban Aucejo & Patrick Coate & V. Joseph Hotz, 2013. "Affirmative action and university fit: evidence from Proposition 209," LSE Research Online Documents on Economics 51565, London School of Economics and Political Science, LSE Library.
  5. Dennis Epple & Richard Romano & Sinan Sarpça & Holger Sieg, 2013. "The U.S. Market for Higher Education: A General Equilibrium Analysis of State and Private Colleges and Public Funding Policies," NBER Working Papers 19298, National Bureau of Economic Research, Inc.
  6. Chan, Jimmy & Eyster, Erik, 2007. "The Distributional Consequences of Diversity-Enhancing University Admissions Rules," CEPR Discussion Papers 6278, C.E.P.R. Discussion Papers.
  7. Liu, Liqun & Neilson, William S., 2011. "High scores but low skills," Economics of Education Review, Elsevier, vol. 30(3), pages 507-516, June.

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