Abstract
Research shows that minority children enter the labor market with lower levels of acquired skill than do white children. This paper attempts to analyze one possible cause: the impact of a perceived lack of future opportunities on the human capital development of minority children. I take advantage of changes in affirmative action laws in California and Texas as a natural experiment and employ both difference-in-difference-in-difference and fixed effects methodologies to test for changes in achievement test scores among minority children. The results show a significant negative impact among black children of all ages in the affected states.
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