Reverse Discrimination and Efficiency in Education

De Fraja Gianni
CEIS Research Paper
This paper shows that reverse discrimination policies can find a justification purely on efficiency grounds. We study the optimal provision of education when households belong to different groups, differing in the distribution of the potential to benefit from education among individuals, which is private information. The main result is that the high potential individuals from groups with relatively few high potential individuals should receive more education than otherwise identical individuals from groups with a more favourable distribution of these benefits.
Number: 38
Keywords: Reverse discrimination, Affirmative action, Education policy, Minorities
JEL codes: I28, D63
Date: Sunday, October 19, 2003
Revision Date: Sunday, October 19, 2003