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School Choice Mechanisms, Peer Effects and Sorting

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  • Caterina Calsamiglia
  • Francisco Martínez-Mora
  • Antonio Miralles

Abstract

We study the effects that school choice mechanisms and school priorities have on the degree of sorting of students across schools and neighborhoods, when school quality is endogenously determined by the peer group. Using a model with income or ability heterogeneity, we compare the popular Deferred Acceptance (DA) and Boston (BM) mechanisms under several scenarios. With residential priori-ties, students and their households fully segregate into quality-ranked schools and neighborhoods under both mechanisms. With no residential priorities and a bad public school, DA does not generate sorting in general, while BM does so between a priori good public schools. With private schools, the best public school becomes more elitist under BM.

Suggested Citation

  • Caterina Calsamiglia & Francisco Martínez-Mora & Antonio Miralles, 2015. "School Choice Mechanisms, Peer Effects and Sorting," Discussion Papers in Economics 15/01, Division of Economics, School of Business, University of Leicester.
    • Handle: RePEc:lec:leecon:15/01
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    References listed on IDEAS

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    Cited by:

    1. Basteck, Christian & Mantovani, Marco, 2018. "Cognitive ability and games of school choice," Games and Economic Behavior, Elsevier, vol. 109(C), pages 156-183.
    2. Bykhovskaya, Anna, 2020. "Stability in matching markets with peer effects," Games and Economic Behavior, Elsevier, vol. 122(C), pages 28-54.
    3. Estrada, Ricardo, 2016. "The Effect of the Increasing Demand for Elite Schools on Stratification," Economics Working Papers MWP2016/02, European University Institute.
    4. Christopher Avery & Parag A. Pathak, 2021. "The Distributional Consequences of Public School Choice," American Economic Review, American Economic Association, vol. 111(1), pages 129-152, January.
    5. Estrada, Ricardo, 2022. "The effect of the demand for elite schools on stratification," Economics Letters, Elsevier, vol. 215(C).
    6. Hatfield, John William & Kojima, Fuhito & Narita, Yusuke, 2016. "Improving schools through school choice: A market design approach," Journal of Economic Theory, Elsevier, vol. 166(C), pages 186-211.
    7. Art Shala & Xhevat Sopi, 2022. "Communication channels consumption across awareness building, information search and school choice - perspectives from the VET sector in Kosovo," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 23(1), pages 109-118, June.

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    More about this item

    Keywords

    school choice; mechanism design; 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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