We link data on racial self-identification with changes in state-level affirmative action policies to ask whether racial self-identification responds to economic incentives. We find that after a state bans affirmative action, multiracial individuals who face an incentive to identify under affirmative action are about 30% less likely to identify with their minority group. In contrast, multiracial individuals who face a disincentive to identify under affirmative action are roughly 20% more likely to identify with their minority group once affirmative action policies are banned
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