Ronald Caldwell Jr. (Department of Economics, The University of Kansas)
Abstract
Research shows that minority children enter the labor market with lower levels of acquired skill than do white children. This paper attempts to analyze one possible cause: the impact of a perceived lack of future opportunities on the human capital development of minority children. I take advantage of changes in affirmative action laws in California and Texas as a natural experiment and employ both difference-in-difference-in-difference and fixed effects methodologies to test for changes in achievement test scores among minority children. The results show a significant negative impact among black children of all ages in the affected states.
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