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The Direct and Spillover Effects of Large-scale Affirmative Action at an Elite Brazilian University

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  • Cecilia Machado
  • Germ'an Reyes
  • Evan Riehl

Abstract

We examine the effects of an affirmative action policy at an elite Brazilian university that reserved 45 percent of admission slots for Black and low-income students. We find that marginally-admitted students who enrolled through the affirmative action tracks experienced a 14 percent increase in early-career earnings. But the adoption of affirmative action also caused a large decrease in earnings for the university's most highly-ranked students. We present evidence that the negative spillover effects on highly-ranked students' earnings were driven by both a reduction in human capital accumulation and a decline in the value of networking.

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  • Cecilia Machado & Germ'an Reyes & Evan Riehl, 2023. "The Direct and Spillover Effects of Large-scale Affirmative Action at an Elite Brazilian University," Papers 2305.02513, arXiv.org, revised Jun 2023.
    • Handle: RePEc:arx:papers:2305.02513
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