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College majors are increasingly stratified by ethnicity in the U.S., with underrepresented minority (URM) students steadily earning relatively less-lucrative degrees over the past 20 years. At the same time, many public universities have increasingly restricted access to high-demand majors using major restriction policies like grade minimums and competitive internal applications. We investigate the causal relationship between major restriction policies and systematic socioeconomic stratification. A difference-in-difference event study design around the implementation of 29 major restrictions at four large public universities shows that the restrictions are binding and differentially impact underrepresented minority (URM) students, leading them to earn relatively less-lucrative majors.