Affirmative action : one size does not fit all

Kala Krishna; Alexander Tarasov

This paper identifies a new reason for giving preferences to the disadvantaged using a model of contests. There are two forces at work: the effort effect working against giving preferences and the selection effect working for them. When education is costly and easy to obtain (as in the U.S.), the selection effect dominates. When education is heavily subsidized and limited in supply (as in India), preferences are welfare reducing. The model also shows that unequal treatment of identical agents can be welfare improving, providing insights into when the counterintuitive policy of rationing educational access to some subgroups is welfare improving.

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Year of publication:	2013
Authors:	Krishna, Kala ; Tarasov, Alexander
Publisher:	Mannheim [u.a.] : Sonderforschungsbereich/Transregio 15
Subject:	contests \| educational quotas \| private benefits \| social welfare \| Antidiskriminierungsrecht \| Anti-discrimination law \| Bildungspolitik \| Education policy \| Minderheit \| Minority \| Subvention \| Subsidy \| Schulbesuch \| School attendance \| Schulauswahl \| School choice \| Theorie \| Theory \| USA \| United States \| Indien \| India