London School of Economics Centre for the Economics of Education LSE
Centre for the Economics of Education  (CEE)

Abstract for:

Affirmative Action and University Fit: Evidence from Proposition 209

Peter  Arcidiacono,  Esteban  Aucejo,  Patrick  Coate,  V. Joseph  Hotz,  June 2013
Paper No' CEPDP1224: | Full paper (pdf)
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Keywords: Affirmative action, college enrollment, college graduation, mismatch

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This Paper is published under the following series: CEP Discussion Papers
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Abstract:

Proposition 209 banned the use of racial preferences in admissions at public colleges in California. We analyze unique data for all applicants and enrollees within the University of California (UC) system before and after Prop 209. After Prop 209, graduation rates increased by 4.4%. We present evidence that certain institutions are better at graduating more-prepared students while other institutions are better at graduating less-prepared students and that these matching effects are particularly important for the bottom tail of the qualification distribution. We find that Prop 209 led to a more efficient sorting of minority students and the sorting effects explain over 20% of the graduation rate increase. Further, universities appear to have responded to Prop 209 by investing more in their students, explaining between 30-45% of the graduation rate increase.