A new study by researchers at the University of Connecticut School of Business and the Tuck School of Business at Dartmouth found that racial diversity on college campuses is more than just a societal mandate, it also results in higher earnings for graduates.

The researchers examined more than 6,000 cohorts of MBA and law students over several decades and found that having even one additional minority student among a cohort of 100 students increased starting salaries cumulatively across the cohort by up to $30,000.

“When we started our work, we expected to uncover the opposite finding,’’ UConn business professor Debanjan Mitra says. “This is a very, very robust finding. The data spoke — and it did so loudly.”

The article containing these findings was published today in the journal Nature. It’s co-authored by Mitra, Dartmouth professor Peter Golder, and UConn alumna Mariya Topchy ’23 Ph.D.

Research Released at Critical Time in National Policy

The empirical evidence comes at a time when diversity policies in higher education and corporate America are under increasing pressure and facing skepticism. In 2023, The U.S. Supreme Court overturned affirmative action citing racial diversity’s educational outcomes as “elusive” and “standardless,” leading to restructured admissions policies nationwide and sparking debate about the role of diversity more broadly.

The authors’ investigation is the first multischool, multidecade study tracking educational cohorts from matriculation to graduation and demonstrating the objective economic benefits of racial diversity realized by graduates in the labor market.

“It’s the most comprehensive study of its kind to date,” Golder says. “We compiled data from true student cohorts over many years and across two different educational contexts so that we could confidently assess the role of racial diversity in higher education.”

The researchers compiled two large data sets: 2,964 MBA cohorts across 141 business schools over 29 years and 3,386 law school cohorts across 200 law schools over 21 years. They discovered that cohorts with higher racial diversity at matriculation were associated with higher median salaries at graduation, even after controlling for student quality and school-specific differences.

Surprisingly, having just one additional minority student for every 100 in a graduating cohort, impacted starting salaries cumulatively across the entire cohort by about $13,000 for MBA students and $30,000 for law school students, Mitra says. Since starting salary differences persist through a compounding effect over a lifetime of earnings, this initial increase translates into a whopping $1.6 million and $3.8 million in additional income for the entire MBA and law school cohorts, all attributable to the one additional minority student.

Benefits Extend to All Students — Minority or Not

The researchers’ analysis isolates the impact of racial diversity itself, instead of capturing the advantages of attending a prestigious or well-endowed school. They controlled for such factors as academic preparation and institutional reputation.

Mitra says students who learn in diverse environments will more frequently encounter a broader range of experiences and perspectives. That can strengthen adaptability, critical thinking, and communication skills, which are valued by employers.

The study also emphasizes the importance of social networks. Because colleges help students build professional networks, diverse campuses foster connections that can open doors to job opportunities, mentorships, and contacts, all contributing to career and financial gain.

The researchers also discovered that the benefits apply to all students, not just those from underrepresented groups.

“Our results indicate that policies promoting racial diversity boost salaries for the entire cohort of students,” says Golder. “The key implication of our study is pretty clear, namely that efforts to reduce racial diversity by outlawing affirmative action and dropping DEI initiatives will make us all poorer.”

Mitra says he hopes their study’s new empirical evidence will reignite public conversations about the important role of racial diversity throughout our society.