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Your greater point still stands, but it's important to consider that legacy students--who generally come from better educational backgrounds, are more likely to have high-IQ parents, etc--are going to be far more qualified, on average, than non-legacy students, so it's not surprising their acceptance rate is higher, and their higher acceptance rate alone should not be taken as evidence of favorable treatment in admissions. In Harvard's most recent accepted class, the average SAT score for legacy students (1543) was actually higher than that for non-legacy students (1515). I think when we refer to legacy students getting favorable treatment, we are really referring to those legacy students with significant connections to the school (parents donated a lot, know lots of people high-up in the administration, etc). I only skimmed the NBER study so you can correct me if I'm wrong, but it appears that the five-fold increase in admissions odds was experienced by ALDC students as a group, not legacy students, so it seems like the A, D, and C are doing all the work.

This means that legacy students without any special ties to the school are probably the least-favorably treated group in admissions as schools face mounting pressure to admit fewer legacies and can much more easily afford to drop the non-special connection legacies.

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