Do Less Informative College Admission Exams Reduce Earnings Inequality? Evidence from Colombia

Evan Riehl

Journal of Labor Economics, 2024, vol. 42, issue 4, 1009 - 1047

Abstract: This paper asks whether reducing the informativeness of college admission exams reduces inequality in postcollege earnings. I examine a 2000 reform of the Colombian college admission exam that sought to reduce bias in scores. The reform reduced test score gaps between high- and low-income students by nearly 50% in some subjects, but it also decreased the exam’s predictive power for abilities that matter in college. I find that the reform caused students to attend colleges where they were more likely to drop out, which reduced earnings for both high- and low-income students.

Date: 2024
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