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The Direct and Spillover Effects of Large-Scale Affirmative Action at an Elite Brazilian University

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  • Cecilia Machado
  • Germán Reyes
  • Evan Riehl

Abstract

We examine the effects of an affirmative action policy at an elite Brazilian university that reserved 45% 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% 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.

Suggested Citation

  • Cecilia Machado & Germán Reyes & Evan Riehl, 2025. "The Direct and Spillover Effects of Large-Scale Affirmative Action at an Elite Brazilian University," Journal of Labor Economics, University of Chicago Press, vol. 43(2), pages 391-431.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/726385
    DOI: 10.1086/726385
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