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Pulled-in and Crowded-out: Heterogeneous Outcomes of Merit-based School Choice

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  • Salvanes, Kjell G
  • ,
  • Liu, Kai

Abstract

We study the effects of changing the rule that defines how students are selected into high schools in a context where school capacity is fixed. Schools for which demand exceeds supply must necessarily exclude some students from enrollment. We provide a theoretical framework to analyze the overall effect of policy changes, taking into account the crowding-out effect. By exploiting a reform that implemented merit-based allocation in Norway, we show that we can identify the relevant parameters. The reform had an overall negative effect because of the negative impact on crowded-out students. Different allocation rules would result in higher average outcomes.

Suggested Citation

  • Salvanes, Kjell G & , & Liu, Kai, 2022. "Pulled-in and Crowded-out: Heterogeneous Outcomes of Merit-based School Choice," CEPR Discussion Papers 16853, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:16853
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    More about this item

    Keywords

    School choice; Meritocratic access; Crowding out;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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