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Affirmative Action: One Size Does Not Fit All

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  • Kala Krishna
  • Alexander Tarasov

Abstract

This paper identifies a new reason for giving preferences to the disadvantaged using a model of contests. There are two forces at work: the effort effect working against giving preferences and the selection effect working for them. When education is costly and easy to obtain (as in the U.S.), the selection effect dominates. When education is heavily subsidized and limited in supply (as in India), preferences are welfare reducing. The model also shows that unequal treatment of identical agents can be welfare improving, providing insights into when the counterintuitive policy of rationing educational access to some subgroups is welfare improving.

Suggested Citation

  • Kala Krishna & Alexander Tarasov, 2013. "Affirmative Action: One Size Does Not Fit All," NBER Working Papers 19546, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19546
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    Cited by:

    1. Luiz Brotherhood & Bernard Herskovic & Joao Ramos, 2022. "Income-based affirmative action in college admissions," UB School of Economics Working Papers 2022/425, University of Barcelona School of Economics.
    2. Subhasish M. Chowdhury & Anastasia Danilov & Martin G. Kocher, 2023. "The Lifecycle of Affirmative Action Policies and Its Effect on Effort and Sabotage Behavior," Rationality and Competition Discussion Paper Series 401, CRC TRR 190 Rationality and Competition.
    3. Frances Xu Lee & Wing Suen, 2023. "Gaming A Selective Admissions System," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(1), pages 413-443, February.
    4. Elizabeth Kaletski & Nishith Prakash, 2016. "Affirmative action policy in developing countries: Lessons learned and a way forward," WIDER Working Paper Series 052, World Institute for Development Economic Research (UNU-WIDER).
    5. Akyol, Pelin & Krishna, Kala, 2017. "Preferences, selection, and value added: A structural approach," European Economic Review, Elsevier, vol. 91(C), pages 89-117.
    6. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    7. Elizabeth Kaletski & Nishith Prakash, 2016. "Affirmative action policy in developing countries: Lessons learned and a way forward," WIDER Working Paper Series wp-2016-52, World Institute for Development Economic Research (UNU-WIDER).
    8. Joao Ramos & Bernard Herskovic, 2017. "Promoting Educational Opportunities: Long-run Implications of Affirmative Action in College Admissions," 2017 Meeting Papers 1552, Society for Economic Dynamics.

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    More about this item

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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