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The Effect of the Increasing Demand for Elite Schools on Stratification

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  • Estrada, Ricardo

Abstract

I use detailed applications data to document a case in which, contrary to prevailing concerns, increasing school stratification by ability co-existed with stable stratification by family income: Mexico City public high schools. To understand this puzzle, I develop a model that shows that the effect of an overall increase in the demand for elite schools on school stratification by family income is a horse race between the correlations of family income and ability, and family income and demand. My empirical analysis reveals an initial (and decreasing) demand gap by family income that explains the observed stability in stratification.

Suggested Citation

  • Estrada, Ricardo, 2017. "The Effect of the Increasing Demand for Elite Schools on Stratification," Research Department working papers 1065, CAF Development Bank Of Latinamerica.
    • Handle: RePEc:dbl:dblwop:1065
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    File URL: https://scioteca.caf.com/handle/123456789/1065
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    Cited by:

    1. Ricardo Estrada & Jérémie Gignoux & Agustina Hatrick, 2025. "Learning About Opportunity: Spillovers of Elite School Admissions in Peru," The Economic Journal, Royal Economic Society, vol. 135(671), pages 2220-2241.
    2. Estrada, Ricardo, 2022. "The effect of the demand for elite schools on stratification," Economics Letters, Elsevier, vol. 215(C).
    3. Chen, Li & Sebastián Pereyra, Juan, 2019. "Self-selection in school choice," Games and Economic Behavior, Elsevier, vol. 117(C), pages 59-81.

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • D59 - Microeconomics - - General Equilibrium and Disequilibrium - - - Other

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