When economist Ursina Schaede began working on a research idea during the third year of her PhD, she had an ambitious question but no funding to access the data needed to answer it. Support from the Yrjö Jahnsson Foundation changed that.

Several years later, the project has culminated in publication in the American Economic Review (AER)—one of the world’s leading journals in economics. Along the way, the research also received international recognition, including a CESifo award and coverage in The Economist, reflecting the broad interest in its findings.

Can quotas improve both diversity and quality?

The study tackles a question that has long been debated in economics and public policy: Do quota policies inevitably reduce quality and productivity?

Affirmative action and quota systems are often criticised on the grounds that they require admitting applicants with weaker observable qualifications. Yet there has been little evidence on whether this actually translates into poorer performance once people enter the workforce.

Schaede and her co-author, Ville Mankki (University of Jväskylä), examined Finland’s former quota for male primary school teachers, which reserved around 40 per cent of teacher education places for men until 1989. The abolition of the quota created a unique natural experiment that allowed the researchers to evaluate its long-term consequences using comprehensive Finnish register data.

Their findings challenge conventional assumptions. Pupils who were exposed to more teachers admitted under the quota were more likely to continue into post-compulsory education, attained higher levels of education, and showed stronger attachment to the labour market by age 25. Rather than lowering quality, the quota appeared to improve the allocation of talent by identifying capable candidates whose potential was not fully captured by traditional admission criteria.

For Schaede, the broader message extends well beyond teacher education.

”I hope this study will help us re-evaluate how we think about admitting candidates to limited opportunities. Are we selecting people based on the right criteria, or do some groups perform differently on admission tests without those differences reflecting how well they will later perform in education or at work?”

Early support made the research possible

The project began with an idea—but little else.

”When I started this project in the third year of my PhD, I only had a research idea, but no money and no access to data,” Schaede recalls.

Obtaining funding at such an early stage can be difficult, especially before any preliminary results exist. The Yrjö Jahnsson Foundation’s grant enabled her to purchase access to the Finnish register data that ultimately made the entire project possible.

”I was so excited when I received project funding from YJS that allowed me to pay for data access.”

Looking back, Schaede describes the funding as decisive.

”The YJS funding was key in getting this project started, and I am incredibly grateful.”

She believes that this type of support fills an important gap in the research funding landscape.

”I really appreciate that YJS funds early-career scientists and is willing to take a risk. Small grants that help researchers explore new ideas before they have an established track record are too scarce. Every project—even those that do not develop exactly as planned—is a valuable learning experience.”

Looking ahead

Following the publication, Schaede continues to work on questions related to labour economics and education. Her current research examines maternal labour supply after childbirth and the long-term effects of Finland’s KiVa anti-bullying programme in collaboration with researchers from Finland, Switzerland and Spain. She also hopes to continue studying how university admission policies can promote both fairness and efficiency. Schaede is currently working as an Assistant Professor at the Department of Economics at Tufts University and she is a Visiting Researcher at Aalto University. She is visiting the University of Zurich in the upcoming academic year.

Her advice to young researchers reflects her own experience:

”It’s always difficult to start a new project, and setbacks are normal. Be creative, learn from each experience, and keep sight of why your research question matters.”

For the Yrjö Jahnsson Foundation, Schaede’s journey demonstrates the value of investing in promising ideas at an early stage. A grant that initially funded access to research data ultimately helped launch a project that gained international recognition and was published in one of the world’s most prestigious economics journals.

 

Above: Ursina Schaede

Research highlights

• Published in the American Economic Review (2026)
• Research recognised by CESifo (2022)
• Featured in The Economist while the study was a working paper
• Supported by the Yrjö Jahnsson Foundation at the project’s earliest stage

Link to the article here