Affirmative Action, Incentives and the Black-White Test Score Gap
AbstractThis paper develops a theoretical model of college admissions to study the effects of affirmative action policies on the high school achievement of college bound students. The innovation is to include endogenous human capital decisions in the model. When colleges switch admissions policies, they implicitly alter the likelihood of acceptance earned by a given human capital investment. Thus, human capital investments are sensitive to changes in admissions policies. The main results are that banning affirmative action increases the black-white test score gap and decreases college enrollment and social welfare of the minority group.
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Bibliographic InfoPaper provided by Department of Economics, College of William and Mary in its series Working Papers with number 03.
Length: 44 pages
Date of creation: 01 Sep 2004
Date of revision:
Affirmative Action; Discrimination; Public Policy; Education; Asymmetric Information;
Find related papers by JEL classification:
- I20 - Health, Education, and Welfare - - Education - - - General
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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- Haim Levy, 1992. "Stochastic Dominance and Expected Utility: Survey and Analysis," Management Science, INFORMS, vol. 38(4), pages 555-593, April.
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