Marianne Bertrand, Rema Hanna, Sendhil Mullainathan present new evidence on the impact of affirmative action in university admissions – this time not from racial AA in the US, but caste AA inÂ India. They find a neat equity-efficiency tradeoff, illustrating the political complexity of such programs.
Affirmative Action in Education: Evidence From Engineering College Admissions in India
by Marianne Bertrand, Rema Hanna, Sendhil Mullainathan
Many countries mandate affirmative action in university admissions for traditionally disadvantaged groups. Little is known about either the efficacy or costs of these programs. This paper examines affirmative action in engineering colleges in India for “lower-caste” groups. We find that it successfully targets the financially disadvantaged: the marginal upper-caste applicant comes from a more advantaged background than the marginal lower-caste applicant who displaces him. Despite much lower entrance exam scores, the marginal lower-caste entrant does benefit: we find a strong, positive economic return to admission. These findings contradict common arguments against affirmative action: that it is only relevant for richer lower-caste members, or that those who are admitted are too unprepared to benefit from the education. However, these benefits come at a cost. Our point estimates suggest that the marginal upper-caste entrant enjoys nearly twice the earnings level gain as the marginal lower-caste entrant. This finding illustrates the program’s redistributive nature: it benefits the poor, but costs resources in absolute terms. One reason for this lower level gain is that a smaller fraction of lower-caste admits end up employed in engineering or advanced technical jobs. Finally, we find no evidence that the marginal upper-caste applicant who is rejected due to the policy ends up with more negative attitudes towards lower castes or towards affirmative action programs. On the other hand, there is some weak evidence that the marginal lower-caste admits become stronger supporters of affirmative action programs.
One of my backburner projects is to look at the impact of affirmative action for Indigenous students at Australian universities. Watch this space.