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Market Design for Distributional Objectives in (Re)assignment: An Application to Improve the Distribution of Teachers in Schools

Author

Listed:
  • Julien Combe

    (École Polytechnique)

  • Umut Mert Dur

    (North Carolina State University)

  • Olivier Tercieux

    (Paris School of Economics)

  • Camille Terrier

    (University of Lausanne)

  • M. Utku Ünver

    (Boston College)

Abstract

Centralized (re)assignment of workers to jobs is increasingly common in public and private sectors. These markets often suffer from distributional problems. To alleviate these, we propose two new strategy-proof (re)assignment mechanisms. While they both improve individual and distributional welfare over the status quo, one achieves two-sided efficiency and the other achieves a novel fairness property. We quantify the performance of these mechanisms in teacher (re)assignment where unequal distribution of experienced teachers in schools is a widespread concern. Using French data, we show that our efficient mechanism reduces the teacher experience gap across regions more effectively than benchmarks, including the current mechanism, while also effectively increasing teacher welfare. As an interesting finding, while our fairness-based mechanism is very effective in reducing teacher experience gap, it prevents the mobility of tenured teachers, which is a detrimental teacher welfare indicator.

Suggested Citation

  • Julien Combe & Umut Mert Dur & Olivier Tercieux & Camille Terrier & M. Utku Ünver, 2022. "Market Design for Distributional Objectives in (Re)assignment: An Application to Improve the Distribution of Teachers in Schools," Boston College Working Papers in Economics 1050, Boston College Department of Economics.
  • Handle: RePEc:boc:bocoec:1050
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    References listed on IDEAS

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    More about this item

    Keywords

    Matching Theory; Market Design; Priority Design; Teacher Reassignment; Status- quo Improvement; Fairness; Efficiency; Distributional Welfare Measures;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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