Affiliation:
1. Department of Economics, Boǧazici University (email: )
2. Southwestern University of Finance and Economics (email: )
Abstract
In 2012, Brazilian public universities were mandated to use affirmative action policies for candidates from racial and income minorities. We show that the policy makes the students’ affirmative action status a strategic choice and may reject high-achieving minority students while admitting low-achieving majority students. Empirical data shows evidence consistent with this type of unfairness in more than 49 percent of the programs. We propose a selection criterion and an incentive-compatible mechanism that, for a wider range of similar problems and the one in Brazil in particular, is fair and removes any gain from strategizing over the privileges claimed. (JEL I23, O15, I28, J15, D82, H52)
Publisher
American Economic Association
Subject
General Economics, Econometrics and Finance
Cited by
17 articles.
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