TY - RPRT AU - Mello, Ursula AU - Melo, Ana Paula AU - Santos, Alei TI - Shifting Pathways: Displacement, Substitution, and the Equilibrium Effects of Preferential College Admissions PY - 2026/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18880 UR - https://www.iza.org/publications/dp18880 AB - Admission policies can reshape educational pathways before college entry by changing opportunities and incentives to invest. We study these responses using Brazil’s 2012 Federal Quota Law, which expanded reserved seats for underrepresented students in elite public universities. Exploiting variation induced by pre-existing quota policies, we implement matched difference-in-differences and follow students through college completion. We find that targeted students increase high-school completion, exam participation, and college enrollment. In contrast, non-targeted students substitute toward private institutions rather than leave higher education and become more likely to complete college. Together, these responses reveal anticipatory adjustments and system-wide reallocation across higher education institutions. KW - affirmative action KW - college admissions KW - human capital investment KW - educational attainment KW - displacement and reallocation ER -