Affirmative Action, Gender and Overeducation: evidence in a quality public university in the Northeast of Brazil

This study analyzes whether the beneficiaries of an Affirmative Action (AA) bonus from the Federal University of Rio Grande do Norte (UFRN), after graduating, are being inserted in the labor market with occupations compatible with their qualifications or have more schooling than is required for the exercise of the professional activity (Overeducation). Using a Regression Discontinuity Design (RDD) and administrative data from UFRN linked to the Annual Report of Social Information (RAIS), it was identified that women admitted by AA are 19.7 percentage points more likely to complete the course. For the men served by the policy, attending UFRN resulted in an increase of 22.9 percentage points in the probability of overeducation, indicating less compatibility between the education they had and the occupation. This article contributes to a scarce literature, shedding light on the effect of attending a free quality course on the correct allocation in the formal labor market.