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Affirmative Action and Human Capital Investment: Evidence from a Randomized Field Experiment

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  • Christopher S. Cotton
  • Brent R. Hickman
  • Joseph P. Price

Abstract

We conduct a field experiment paying students according to relative performance on a mathematics exam and tracking study efforts on a mathematics website to test the incentive effects of affirmative action (AA) policies on study effort and math proficiency. AA increases study effort and exam performance for the majority of disadvantaged students targeted by the policy. While the performance of the highest-ability students targeted by the AA policy declines, on average study activity and exam performance rise under AA. Overall, the experimental evidence suggests that AA can promote greater equality of market outcomes while narrowing achievement gaps.

Suggested Citation

  • Christopher S. Cotton & Brent R. Hickman & Joseph P. Price, 2022. "Affirmative Action and Human Capital Investment: Evidence from a Randomized Field Experiment," Journal of Labor Economics, University of Chicago Press, vol. 40(1), pages 157-185.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/713743
    DOI: 10.1086/713743
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    Cited by:

    1. Fernanda Estevan & Thomas Gall & Louis-Philippe Morin, 2019. "Redistribution Without Distortion: Evidence from an Affirmative Action Programme at a Large Brazilian University," The Economic Journal, Royal Economic Society, vol. 129(619), pages 1182-1220.
    2. Eszter Czibor & Silvia Dominguez Martinez, 2019. "Never too Late: Gender Quotas in the Final Round of a Multistage Tournament," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 35(2), pages 319-363.
    3. Akabayashi, Hideo & Naoi, Michio, 2019. "Subject variety and incentives to learn: Evidence from public high school admission policies in Japan," Japan and the World Economy, Elsevier, vol. 52(C).
    4. Fernando Botelho & Ricardo Madeira, Marcos A. Rangel, 2015. "Racial Discrimination in Grading: Evidence from Brazil," Working Papers, Department of Economics 2015_04, University of São Paulo (FEA-USP).
    5. Peter Arcidiacono & Michael Lovenheim, 2016. "Affirmative Action and the Quality-Fit Trade-Off," Journal of Economic Literature, American Economic Association, vol. 54(1), pages 3-51, March.
    6. Grau, Nicolás, 2018. "The impact of college admissions policies on the academic effort of high school students," Economics of Education Review, Elsevier, vol. 65(C), pages 58-92.
    7. Delfino, Alexia, 2021. "Breaking Gender Barriers: Experimental Evidence on Men in Pink-Collar Jobs," IZA Discussion Papers 14083, Institute of Labor Economics (IZA).
    8. Mello, Ursula, 2023. "Affirmative action and the choice of schools," Journal of Public Economics, Elsevier, vol. 219(C).
    9. Karlsson, Linn & Wikström, Magnus, 2021. "Admission groups and academic performance: A study of marginal entrants in the selection to higher education," Umeå Economic Studies 1000, Umeå University, Department of Economics.
    10. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    11. Xiangting Hu & Xiangbo Liu & Chao He & Tiantian Dai, 2020. "Education policies, pre-college human capital investment and educated unemployment," Journal of Economics, Springer, vol. 129(3), pages 241-270, April.
    12. Subedi, Mukti Nath & Rafiq, Shuddhasattwa & Ulker, Aydogan, 2022. "Effects of Affirmative Action on Educational and Labour Market Outcomes: Evidence from Nepal's Reservation Policy," Journal of Economic Behavior & Organization, Elsevier, vol. 200(C), pages 443-463.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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