by Marcos Hirai Catao

Abstract

In this study, I examine the effects of affirmative action (AA) policies on high school students’ incentives to invest in human capital, focusing on the Brazilian Quotas Law (QL). This law mandates that federal higher education institutions reserve half of their seats for students from public high schools. Utilizing administrative data on schooling, college enrollment, and performance on standardized tests, I observe an increase in test scores among private high school students who attend public colleges. This increase corresponds with the reduction in available non-reserved seats. Conversely, no significant change is observed in the performance of public school students, despite a substantial increase in reserved seats, indicating a potential behavioral response. To estimate the effects of the policy, I analyze variations in policy exposure across regions and cohorts using difference-in-differences methods, which predominantly yield precisely estimated null results. Finally, I discuss potential reconciliations of these, proposing avenues for further research to explain the discrepancies.

Professor Jason Baron, Faculty Advisor
Professor Duncan Thomas, Faculty Advisor
Professor Michelle Connolly, Faculty Advisor

JEL Codes: I2, I23, I24

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