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Does affirmative action lead to mismatch? A new test and evidence

  • Peter Arcidiacono
  • Esteban M. Aucejo
  • Hanming Fang
  • Kenneth I. Spenner

We argue that once we take into account the students' rational enrollment decisions, mismatch in the sense that the intended beneficiary of affirmative action admission policies are made worse o could occur only if selective universities possess private information about students' post-enrollment treatment effects. This necessary condition for mismatch provides the basis for a new test. We propose an empirical methodology to test for private information in such a setting. The test is implemented using data from Campus Life and Learning Project (CLL) at Duke. Evidence shows that Duke does possess private information that is a statistically significant predictor of the students' post-enrollment academic performance. We also propose strategies to evaluate more conclusively whether the evidence of Duke private information has generated mismatch.

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Article provided by Econometric Society in its journal Quantitative Economics.

Volume (Year): 2 (2011)
Issue (Month): 3 (November)
Pages: 303-333

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Handle: RePEc:ecm:quante:v:2:y:2011:i:3:p:303-333
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  8. Arcidiacono, Peter & Khan, Shakeeb & Vigdor, Jacob L., 2011. "Representation versus assimilation: How do preferences in college admissions affect social interactions?," Journal of Public Economics, Elsevier, vol. 95(1-2), pages 1-15, February.
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  16. Mark V. Pauly, 1974. "Overinsurance and Public Provision of Insurance: The Roles of Moral Hazard and Adverse Selection," The Quarterly Journal of Economics, Oxford University Press, vol. 88(1), pages 44-62.
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