Business and law school graduates from diverse peer groups earn higher starting salaries, according to a groundbreaking study published in *Economic Inquiry*. The research, led by economists Debanjan Mitra, Peter Golder, and Mariya Topchy, analyzes decades of data from 350 institutions, tracking outcomes for nearly 3,000 business and law school alumni over 20 years. Their findings suggest that students graduating with racially and ethnically varied classmates see salary advantages, even after controlling for school quality and economic conditions.

The study’s methodology addresses gaps in prior research by isolating diversity’s impact through a novel metric: peer group diversity scores, which measure class composition rather than relying on self-reported data. This approach accounts for systemic wage disparities while highlighting a counterintuitive benefit of diversity programs. Law school graduates, in particular, showed a 12% average salary bump in cohorts with above-average diversity, per the paper’s analysis of 20+ years of employment data.

Critics argue the results conflict with existing evidence on racial wage gaps, but the authors emphasize their work doesn’t endorse race-based policies. Instead, they propose courts reconsider the 2023 Supreme Court ruling that struck down affirmative action, citing insufficient metrics to evaluate diversity initiatives. The paper’s peer diversity index could reshape legal debates about equity in education.

While the findings don’t resolve broader DEI controversies, they offer concrete data to inform policy discussions. As one expert noted, measuring outcomes like starting salaries provides clearer benchmarks than subjective assessments of campus culture. The research underscores the need for standardized metrics in evaluating diversity programs amid evolving legal standards.