In 2006, the Ministry of Education in Taiwan announced a restriction on affirmative education policy for indigenous students in college admission. This thesis applies a difference-in-differences method to examine how the rising competitiveness in the new system could affect the indigenous households’ education investment. The surprisingly positive effect is found to be originated from the significant heterogeneity across parental education. Indigenous parents with high education backgrounds increased their spending on their child’s education greater than other parents. Further analyses with different samples and methods support a two-dimensional heterogeneous response under the new policy and ensure the robustness of findings.