Affirmative Action: One Size Does Not Fit All

Kala Krishna () and Alexander Tarasov

American Economic Journal: Microeconomics, 2016, vol. 8, issue 2, 215-52

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 in favor of them. When education is costly and easy to obtain (as in the United States), 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. (JEL H52, H75, I23, I28, J15, O15)

JEL-codes: H52 H75 I23 I28 J15 O15 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/mic.20140200
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Citations: View citations in EconPapers (8)

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Working Paper: Affirmative Action: One Size Does Not Fit All (2013)
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