An efficiency argument for affirmative action in higher education
AbstractWe consider a dynamic framework in which generations are linked by educational background. In particular, individuals differ in ability to benefit from education, parental education and appurtenance to a group (either a disadvantaged minority or a non-minority). The individual decision to undertake education is inefficient because people fail to account for the fact that their getting education increases the chances that their children will also gain access to education. This intergenerational externality is higher for people from the disadvantaged minority, provided that the difference in expected utility for children of uneducated and educated individuals is larger within this group. This provides an argument for affirmative action in higher education, in the form of larger subsidies to individuals from the minority group, which is exclusively based on efficiency considerations.
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Bibliographic InfoArticle provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.
Volume (Year): 187 (2008)
Issue (Month): 4 (December)
Affirmative action; intergenerational externality.;
Other versions of this item:
- Elena Del Rey & Maria Racionero, 2004. "An efficiency argument for affirmative action in higher education," ANU Working Papers in Economics and Econometrics 2005-447, Australian National University, College of Business and Economics, School of Economics.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Neumark & Harry Holzer, 2000.
"Assessing Affirmative Action,"
Journal of Economic Literature,
American Economic Association, vol. 38(3), pages 483-568, September.
- De Fraja, Gianni, 2002. "Affirmative Action and Efficiency in Education," CEPR Discussion Papers 3357, C.E.P.R. Discussion Papers.
- Roland G. Fryer, Jr. & Glenn C. Loury, 2005.
"Affirmative Action and Its Mythology,"
NBER Working Papers
11464, National Bureau of Economic Research, Inc.
- Elena Del Rey & MarÌa del Mar Racionero, 2002. "Optimal educational choice and redistribution when parental education matters," Oxford Economic Papers, Oxford University Press, vol. 54(3), pages 435-448, July.
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