The Practice and Proscription of Affirmative Action in Higher Education:An Equilibrium Analysis
The paper examines the practice of affirmative action and consequences of its proscription on the admission and tuition policies of institutions of higher education in a general equilibrium. Colleges are differentiated ex ante by endowments and compete for students that differ by race, household income, and academic qualification. Colleges maximize a quality index that is increasing in mean academic score of students, educational resources per student, an income-diversity measure, and a racial-diversity measure. The pool of potential nonwhite students has distribution of income and academic score with lower means than that of whites. In benchmark equilibrium, colleges may condition admission and tuition on race. In a computational model calibrated using estimates from related research, equilibrium has colleges offer tuition discounts and admission preference to nonwhites to promote racial diversity. Equilibrium entails a quality hierarchy of colleges, so the model predicts practices and characteristics of colleges along the hierarchy. Proscription of affirmative action requires that admission and tuition policies are race blind. Colleges then use the informational content about race in income and academic score in reformulating their optimal policies. Admission and tuition policies are substantially modified in equilibrium of the computational model, and both races are significantly affected. Representation of nonwhites falls significantly in all colleges. The drop is particularly pronounced in the top third of the quality hierarchy of colleges.
|Date of creation:||Jun 2003|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
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.:
- Manski, C.F., 1991.
"Identification of Endogenous Social Effects: the Reflection Problem,"
9127, Wisconsin Madison - Social Systems.
- Manski, Charles F, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," Review of Economic Studies, Wiley Blackwell, vol. 60(3), pages 531-42, July.
- Roland Fryer & Glenn C. Loury & Tolga Yuret, 2003.
"Color-Blind Affirmative Action,"
NBER Working Papers
10103, National Bureau of Economic Research, Inc.
- Roland G. Freyer, Jr. & Glenn C. Loury & Tolga Yuret, 2003. "Color Blind Affirmative Action," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-131, Boston University - Department of Economics.
- Dennis Epple & Richard Romano, 2002.
"Educational Vouchers and Cream Skimming,"
NBER Working Papers
9354, National Bureau of Economic Research, Inc.
- Dennis Epple & Richard Romano & Holger Sieg, 2002. "On the Demographic Composition of Colleges and Universities in Market Equilibrium," American Economic Review, American Economic Association, vol. 92(2), pages 310-314, May.
- Rothschild, Michael & White, Lawrence J, 1995. "The Analytics of the Pricing of Higher Education and Other Services in Which the Customers Are Inputs," Journal of Political Economy, University of Chicago Press, vol. 103(3), pages 573-86, June.
- Weili Ding & Steven F. Lehrer, 2006.
"Do Peers Affect Student Achievement in China's Secondary Schools?,"
NBER Working Papers
12305, National Bureau of Economic Research, Inc.
- Weili Ding & Steven F. Lehrer, 2007. "Do Peers Affect Student Achievement in China's Secondary Schools?," The Review of Economics and Statistics, MIT Press, vol. 89(2), pages 300-312, May.
- Weili Ding & Steven Lehrer, 2005. "Do Peers Affect Student Achievement in China's Secondary Schools?," Working Papers 1047, Queen's University, Department of Economics.
- David J. Zimmerman, 2003.
"Peer Effects in Academic Outcomes: Evidence from a Natural Experiment,"
The Review of Economics and Statistics,
MIT Press, vol. 85(1), pages 9-23, February.
- Zimmerman, David J., 1999. "Peer Effects in Academic Outcomes: Evidence From a Natural Experiment," Williams Project on the Economics of Higher Education DP-52, Department of Economics, Williams College.
- Donald Robertson & James Symons, 2003.
"Do Peer Groups Matter? Peer Group versus Schooling Effects on Academic Attainment,"
London School of Economics and Political Science, vol. 70(277), pages 31-53, February.
- Donald Robertson & James Symons, 1996. "Do peer Groups Matter? Peer Groups versus Schooling Effects on Academic Attainment," CEP Discussion Papers dp0311, Centre for Economic Performance, LSE.
- Summers, Anita A & Wolfe, Barbara L, 1977. "Do Schools Make a Difference?," American Economic Review, American Economic Association, vol. 67(4), pages 639-52, September.
- Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
- Caroline Hoxby, 2000. "Peer Effects in the Classroom: Learning from Gender and Race Variation," NBER Working Papers 7867, National Bureau of Economic Research, Inc.
- Henderson, Vernon & Mieszkowski, Peter & Sauvageau, Yvon, 1978. "Peer group effects and educational production functions," Journal of Public Economics, Elsevier, vol. 10(1), pages 97-106, August.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:9799. 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: ()
If references are entirely missing, you can add them using this form.