The direct and spillover effects of large-scale affirmative action at an elite Brazilian university
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2023-06
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We examine the effects of an affirmative action policy at an elite Brazilian university that reserved 45 percent of admission slots for Black and low-income students. We find that marginally-admitted students who enrolled through the affirmative action tracks experienced a 14 percent increase in early-career earnings. But the adoption of affirmative action also caused a large decrease in earnings for the university’s most highly ranked students. We present evidence that the negative spillover effects on highly-ranked students’ earnings were driven by both a reduction in human capital accumulation and a decline in the value of networking.