Education investment effects of affirmative action policy. Contest game argument
In this paper we investigate the problem of effort effects of the affirmative action policy. We develop a version of a rent-seeking game in the style of Tullock (1980) with two heterogeneous players and two stages, considering that ahead of the formal competition players can invest to lower their effort cost. Using this model we show that there are instances in which the normative objective of affirmative action policy to make a level-playing field may be missed. Namely, we demonstrate that if in relative terms the cost of acquiring skills for the ex-ante weaker player (a member of a discriminated group) is low enough as compared to the ex-ante stronger player (non-discriminated), then in the actual competition the ex-ante weaker player may become stronger than the ex-ante stronger player. This result shows that AA programmes cannot be effective if they are designed in isolation based on the minority-group membership only and without taking into account the actual costs of acquiring skills (that is education or learning) by individuals.
|Date of creation:||Oct 2013|
|Contact details of provider:|| Postal: Dundee, DD1 4HN|
Phone: (01382) 344375
Fax: (01382) 344691
Web page: http://www.dundee.ac.uk/econman/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Levine, Ross & Renelt, David, 1992.
"A Sensitivity Analysis of Cross-Country Growth Regressions,"
American Economic Review,
American Economic Association, vol. 82(4), pages 942-963, September.
- Levine, Ross & Renelt, David, 1991. "A sensitivity analysis of cross-country growth regressions," Policy Research Working Paper Series 609, The World Bank.
- N. Gregory Mankiw & David Romer & David N. Weil, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 107(2), pages 407-437.
- Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
- Pal, Sarmistha & Kingdon, Geeta, 2010. "Can Private School Growth Foster Universal Literacy? Panel Evidence from Indian Districts," IZA Discussion Papers 5274, Institute for the Study of Labor (IZA).
- Borge, Lars-Erik & Rattso, Jorn, 1995. "Demographic shift, relative costs and the allocation of local public consumption in Norway," Regional Science and Urban Economics, Elsevier, vol. 25(6), pages 705-726, December.
- Esther Duflo, 2001.
"Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment,"
American Economic Review,
American Economic Association, vol. 91(4), pages 795-813, September.
- Esther Duflo, 2000. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," NBER Working Papers 7860, National Bureau of Economic Research, Inc.
- Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
- David M. Cutler & Douglas W. Elmendorf & Richard J. Zeckhauser, 1993.
"Demographic Characteristics and the Public Bundle,"
NBER Working Papers
4283, National Bureau of Economic Research, Inc.
- Banerjee, Abhijit & Pande, Rohini, 2007.
"Parochial Politics: Ethnic Preferences and Politician Corruption,"
CEPR Discussion Papers
6381, C.E.P.R. Discussion Papers.
- Banerjee, Abhijit V. & Pande, Rohini, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," Working Paper Series rwp07-031, Harvard University, John F. Kennedy School of Government.
- Abhijit Banerjee & Rohini Pande, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," Working Papers id:1079, eSocialSciences.
- James M. Poterba, 1996.
"Demographic Structure and the Political Economy of Public Education,"
NBER Working Papers
5677, National Bureau of Economic Research, Inc.
- James M. Poterba, 1997. "Demographic structure and the political economy of public education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 48-66.
- Anit Mukherjee, 2007. "Public Expenditure on Education : A Review of Selected Issues and Evidence," Working Papers id:856, eSocialSciences.
- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
- Alberto Alesina, 1987. "Macroeconomic Policy in a Two-Party System as a Repeated Game," The Quarterly Journal of Economics, Oxford University Press, vol. 102(3), pages 651-678.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Heinesen, Eskil, 2004. "Determinants of local public school expenditure: a dynamic panel data model," Regional Science and Urban Economics, Elsevier, vol. 34(4), pages 429-453, July.
- Rob French & Geeta Kingdon, 2010. "The relative effectiveness of private and government schools in Rural India: Evidence from ASER data," DoQSS Working Papers 10-03, Department of Quantitative Social Science - UCL Institute of Education, University College London.
When requesting a correction, please mention this item's handle: RePEc:dun:dpaper:279. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Andrzej Kwiatkowski)
If references are entirely missing, you can add them using this form.