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School Choice Design, Risk Aversion, and Cardinal Segregation

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  • Calsamiglia, Caterina

    (IPEG)

  • Martínez-Mora, Francisco

    (University of Leicester)

  • Miralles, Antonio

    (University of Messina)

Abstract

We embed the problem of public school choice design in a model of local provision of education. We define cardinal (student) segregation as that emerging when families with identical ordinal preferences submit different rankings of schools in a centralised school choice procedure. With the Boston Mechanism (BM), when higher types are less risk-averse, and there is sufficient vertical differentiation of schools, any equilibrium presents cardinal segregation. Transportation costs facilitate the emergence of cardinal segregation as does competition from private schools. Furthermore, the latter renders the best public schools more elitist. The Deferred Acceptance mechanism is resilient to cardinal segregation.

Suggested Citation

  • Calsamiglia, Caterina & Martínez-Mora, Francisco & Miralles, Antonio, 2020. "School Choice Design, Risk Aversion, and Cardinal Segregation," IZA Discussion Papers 13464, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13464
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    2. Kutscher, Macarena & Nath, Shanjukta & Urzúa, Sergio, 2023. "Centralized admission systems and school segregation: Evidence from a national reform," Journal of Public Economics, Elsevier, vol. 221(C).
    3. Zhang, Jun, 2021. "Level-k reasoning in school choice," Games and Economic Behavior, Elsevier, vol. 128(C), pages 1-17.
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    More about this item

    Keywords

    segregation; cardinal segregation; school choice mechanisms; peer effects; local public goods;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • H4 - Public Economics - - Publicly Provided Goods
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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