Working Paper: CEPR ID: DP3357
Authors: Gianni De Fraja
Abstract: This Paper studies the optimal education policy in the presence of different groups of households, with groups differing in the distribution of the ability to benefit from education. The main result is that the high ability individuals from groups with relatively few high ability individuals should receive more education than equally able individuals from groups with a more favourable distribution of abilities. The interpretation of this conclusion is that affirmative action policies can find a rationale on efficiency grounds alone.
Keywords: affirmative action; education policy; minorities
JEL Codes: D63; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| disadvantaged group membership (J15) | lower tuition fees (I22) |
| lower tuition fees (I22) | higher education levels (I23) |
| disadvantaged group membership (J15) | higher education levels (I23) |
| affirmative action policies (J78) | more efficient allocation of educational resources (I24) |
| high ability individuals from disadvantaged groups (I24) | more education than equally able individuals from advantaged groups (I24) |