First-generation status as a criterion for affirmative action: Education and labour market effects of a tuition waiver in India

Journal Name: Journal of Economic Behavior & Organization

Higher education can be an important pathway for economic and social mobility, but access to college remains strongly shaped by family background. Existing affirmative action policies in India largely focus on caste or income. This study examines whether first-generation status – whether anyone in a student’s household has previously completed college – can provide an additional basis for supporting disadvantaged students.

The study evaluates Tamil Nadu’s First-Generation Graduate Scholarship, introduced in 2010. The scheme waives tuition fees for first-generation students enrolled in technical higher education, including engineering, medicine and agriculture. Eligibility depends only on family educational history, irrespective of caste, income, religion or gender.

Using nationally representative household survey data, the researchers compare outcomes for first-generation youth in Tamil Nadu before and after the policy with those of similar youth in neighboring Karnataka and Kerala. They also use a broader comparison across other Indian states to check the robustness of the results.

The findings show that the scholarship increased first-generation students’ enrollment in technical higher education, their likelihood of choosing technical fields and their completion of technical degrees. The gains therefore extend across the educational pathway, from college entry to graduation.

The effects extend into the early labor market. Among first-generation adults aged 25-29 years, exposure to the policy increased regular salaried employment and shifted employment away from agriculture towards services. It also increased employment in associate professional occupations requiring specialized technical skills. Household expenditure rose among households with potential beneficiaries, consistent with an improvement in living standards.

The financing results show that tuition waivers and education loans can work together. Although the scholarship covers tuition fees, students still face expenses such as books, examinations, travel and accommodation. Education-loan use increased after the policy, with much of the additional borrowing coming from institutional lenders such as banks.

The gains were not evenly distributed. Educational effects were larger for men and for urban residents, suggesting that financial support alone may not overcome barriers related to location, mobility and access to suitable institutions.

Overall, the study shows that first-generation status can serve as a meaningful additional criterion for higher-education support. By helping students from families with no previous college graduate enter and complete technical education, such policies can contribute to intergenerational educational mobility, while complementing existing caste- and income-based forms of affirmative action.