Working Paper: NBER ID: w27779
Authors: Mitra Akhtari; Natalie Bau; Jean-William P. Lalibert
Abstract: Racial affirmative action policies are widespread in college admissions. Yet, evidence on their effects before college is limited. Using four data sets, we study a U.S. Supreme Court ruling that reinstated affirmative action in three states. Using nationwide SAT data for difference-in-differences and synthetic control analyses, we separately identify the aggregate effects of affirmative action for whites and for underrepresented minorities. Using state-wide Texas administrative data, we measure the effect of affirmative action on racial gaps across the pre-treatment test score distribution. When affirmative action is re-instated, racial gaps in SAT scores, grades, attendance, and college applications fall. Average SAT scores for both whites and minorities increase, suggesting that reductions in racial gaps are driven by improvements in minorities' outcomes. Increases in pre-college human capital and college applications are concentrated in the top half of the test score distribution.
Keywords: Affirmative Action; Human Capital; Education Policy; Racial Inequality
JEL Codes: I21; I24; J15; J24; J48
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Reinstatement of affirmative action policies (J78) | Increased precollege human capital investment among URM students (D29) |
| Reinstatement of affirmative action policies (J78) | No evidence that precollege human capital investment fell for URMs (D29) |
| Reinstatement of affirmative action policies (J78) | Small increase in SAT scores for white students (I24) |
| Reinstatement of affirmative action policies (J78) | 15% reduction in the racial gap in college graduation for students in the top quintile of the 6th grade test score distribution (I24) |
| Increased precollege human capital investment among URM students (D29) | Improved educational outcomes (I24) |