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Affirmative Action: One Size Does Not Fit All

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  • Krishna, Kala
  • Tarasov, Alexander

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 e¤ect 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

  • Krishna, Kala & Tarasov, Alexander, 2013. "Affirmative Action: One Size Does Not Fit All," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 407, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:407
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    References listed on IDEAS

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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. Akyol, Pelin & Krishna, Kala, 2017. "Preferences, selection, and value added: A structural approach," European Economic Review, Elsevier, vol. 91(C), pages 89-117.
    4. 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.
    5. Tampieri Alessandro, 2024. "University Admission: Is Achievement a Sufficient Criterion?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(3), pages 799-833.
    6. 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.
    7. 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.
    8. 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).
    9. Luiz Brotherhood & Bernard Herskovic & João Ramos, 2023. "Income-Based Affirmative Action in College Admissions," The Economic Journal, Royal Economic Society, vol. 133(653), pages 1810-1845.
    10. 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).

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    More about this item

    Keywords

    contests; educational quotas; private benefits; social welfare;
    All these keywords.

    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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