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School choice with independent versus consolidated districts

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  • Thilo Klein
  • Robert Aue
  • Josue Ortega

Abstract

This paper studies the welfare effects of school district consolidation. Using incomplete rank-ordered lists (ROLs) submitted for admission to the Hungarian secondary school system, we estimate complete ROLs assuming that parents do not use dominated strategies and that the matching outcome is stable. These estimates aid in constructing a counterfactual district-based assignment and discerning the factors driving parents' preferences over schools. We find that district consolidation leads to large welfare gains in Budapest, equivalent to students attending a school five kilometres closer to their residences. These gains offset the additional travel distances incurred in the consolidated assignment. 73\% of matched students benefit from district consolidation, while fewer than 3\% are assigned to a less preferred school. Students from smaller and less under-demanded districts benefit relatively more, as well as those with high academic ability. Using reported preferences instead of estimated ones also yields large gains from district consolidation.

Suggested Citation

  • Thilo Klein & Robert Aue & Josue Ortega, 2020. "School choice with independent versus consolidated districts," Papers 2006.13209, arXiv.org, revised Jul 2024.
  • Handle: RePEc:arx:papers:2006.13209
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    Cited by:

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    2. Ortega, Josué & Klein, Thilo, 2023. "The cost of strategy-proofness in school choice," Games and Economic Behavior, Elsevier, vol. 141(C), pages 515-528.
    3. Christopher Neilson & Adam Kapor & Mohit Karnani, 2020. "Aftermarket Frictions and the Cost of Off-Platform Options in Centralized Assignment Mechanisms," Working Papers 635a, Princeton University, Department of Economics, Industrial Relations Section..
    4. Aue, Robert & Bach, Maximilian & Heigle, Julia & Klein, Thilo & Pfeiffer, Friedhelm & Zapp, Kristina, 2020. "The implication of school admission rules for segregation and educational inequality: Research report," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 223254.
    5. Nikhil Agarwal & Eric Budish, 2021. "Market Design," NBER Working Papers 29367, National Bureau of Economic Research, Inc.
    6. Nick Arnosti, 2023. "Lottery Design for School Choice," Management Science, INFORMS, vol. 69(1), pages 244-259, January.
    7. Gersbach, Hans & Haller, Hans, 2022. "Gainers and losers from market integration," Mathematical Social Sciences, Elsevier, vol. 116(C), pages 32-39.
    8. YingHua He & Shruti Sinha & Xiaoting Sun, 2024. "Identification and Estimation in Many‐to‐One Two‐Sided Matching Without Transfers," Econometrica, Econometric Society, vol. 92(3), pages 749-774, May.
    9. Rajnish Kunar & Kriti Manocha & Josue Ortega, 2020. "On the integration of Shapley-Scarf housing markets," Papers 2004.09075, arXiv.org, revised Jan 2022.
    10. Ortega, Josue & Klein, Thilo, 2022. "Improving efficiency and equality in school choice," ZEW Discussion Papers 22-046, ZEW - Leibniz Centre for European Economic Research.
    11. Schwartz, Jacob & Song, Kyungchul, 2024. "The law of large numbers for large stable matchings," Journal of Econometrics, Elsevier, vol. 241(1).
    12. Kumar, Rajnish & Manocha, Kriti & Ortega, Josué, 2022. "On the integration of Shapley–Scarf markets," Journal of Mathematical Economics, Elsevier, vol. 100(C).
    13. Kondratev, Aleksei Y. & Nesterov, Alexander S., 2022. "Minimal envy and popular matchings," European Journal of Operational Research, Elsevier, vol. 296(3), pages 776-787.
    14. YingHua He & Shruti Sinha & Xiaoting Sun, 2024. "Identification and Estimation in Many‐to‐One Two‐Sided Matching Without Transfers," Econometrica, Econometric Society, vol. 92(3), pages 749-774, May.

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    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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