The author thanks Charlie Clotfelter, Jill Constantine, Mark Coppejans, Maria Ferreyra, Eric French, John Jones, Mike Keane, Levis Kochin, Rob McMillan, Marc Rysman, Jeff Smith, and seminar participants at the 2002 AEA Winter Meetings, Boston University, University of California–San Diego, CIRANO Conference on the Econometrics of Education, 2000 Cowles Conference on the Econometrics of Strategy and Decision Making, the NBER Higher Education Group, North Carolina State University, Queens University, Stanford University, Texas A&M University, University of Toronto, University of Washington, University of Western Ontario, University of Wisconsin, and Yale University. The paper benefited tremendously from the suggestions of the editor and the referees.
Affirmative Action in Higher Education: How Do Admission and Financial Aid Rules Affect Future Earnings?
Article first published online: 5 AUG 2005
Volume 73, Issue 5, pages 1477–1524, September 2005
How to Cite
Arcidiacono, P. (2005), Affirmative Action in Higher Education: How Do Admission and Financial Aid Rules Affect Future Earnings?. Econometrica, 73: 1477–1524. doi: 10.1111/j.1468-0262.2005.00627.x
- Issue published online: 5 AUG 2005
- Article first published online: 5 AUG 2005
- Manuscript received November, 2002; final revision received January, 2005.
- Dynamic discrete choice;
- returns to education;
- human capital;
- schooling decisions
This paper addresses how changing the admission and financial aid rules at colleges affects future earnings. I estimate a structural model of the following decisions by individuals: where to submit applications, which school to attend, and what field to study. The model also includes decisions by schools as to which students to accept and how much financial aid to offer. Simulating how black educational choices would change were they to face the white admission and aid rules shows that race-based advantages had little effect on earnings. However, removing race-based advantages does affect black educational outcomes. In particular, removing advantages in admissions substantially decreases the number of black students at top-tier schools, while removing advantages in financial aid causes a decrease in the number of blacks who attend college.