Racial diversity ‘boosts graduate salaries’, finds major study
US students who study in more racially diverse environments are more likely to enjoy higher salaries post-graduation, according to a major analysis of trends over decades.
In findings researchers say cast doubt on the US Supreme Court’s decision to make race-based affirmative action illegal in higher-education admissions decisions in 2023, the presence of just one minority student in a cohort was shown to boost earnings of the entire class.
At the time, justices said the educational outcomes associated with diversity were “elusive”, but the new paper by academics at the University of Connecticut School of Business and the Tuck School of Business at Dartmouth has attempted to address this gap in research for the first time.
The study examined about 3,000 business students from 141 colleges over 29 years, and 3,400 law students from 200 institutions over 21 years – the first to span multiple institutions and multiple decades.
It found that cohorts with higher racial diversity were associated with higher median salaries upon graduation, even after controlling for student quality and institutional reputation.
“Our results consistently demonstrate that racial diversity of an educational cohort is positively associated with cohort median starting salary at graduation,” the report says.
Author Debanjan Mitra, professor of marketing at the University of Connecticut School of Business, told Times Higher Education that these higher salaries reflect clear educational benefits.
“Not only do graduates and universities benefit from these higher salaries, but society overall also benefits through the enhanced capabilities, ie, human capital, of graduates who are educated in more diverse learning environments.”
Even having just one additional minority student for every 100 in a graduating cohort impacted starting salaries across the entire class by $13,000 (£9,500) for MBA students and $30,000 for law school students.
Mitra said he hoped the new evidence, published in the journal Nature, will cause opponents of affirmative action to reconsider the benefits of racial diversity for all.
“Those who still oppose racial diversity must acknowledge that their preference comes at a cost – lower salary for graduates and loss of human capital for society,” he said.
Researchers urged the courts to revisit affirmative action on the basis of the new evidence and for university administrators to implement programmes to take full advantage of the educational benefits that flow from racial diversity.
“Aside from the loss of socially enriching experiences and remediation of past racial injustices, economic harm will ensue for students educated in less-diverse cohorts and collectively for society overall.”