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Sorting, status, and shadow education: How track placement shapes parental investment

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  • Klein, Thilo
  • McNamara, Sarah

Abstract

Educational tracking-separating students into tracks or schools by ability-is commonplace, but access and preferences for top programs often depend on socioeconomic status (SES), reinforcing inequality. We study shadow education in the context of an early-tracking system, exploiting score cut-offs using a pseudo-regression discontinuity design to isolate the causal effect on parental investments. We find that assignment to the highest track disproportionately increases private tutoring among families in the lowest tercile of SES. This suggests tracking activates a behavioral response among disadvantaged households, which may amplify between-track achievement gaps.

Suggested Citation

  • Klein, Thilo & McNamara, Sarah, 2025. "Sorting, status, and shadow education: How track placement shapes parental investment," ZEW Discussion Papers 25-023, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:319893
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    References listed on IDEAS

    as
    1. Atı̇la Abdulkadı̇roğlu & Joshua D. Angrist & Yusuke Narita & Parag Pathak, 2022. "Breaking Ties: Regression Discontinuity Design Meets Market Design," Econometrica, Econometric Society, vol. 90(1), pages 117-151, January.
    2. Atila Abdulkadiroğlu & Joshua D. Angrist & Yusuke Narita & Parag A. Pathak, 2017. "Research Design Meets Market Design: Using Centralized Assignment for Impact Evaluation," Econometrica, Econometric Society, vol. 85, pages 1373-1432, September.
    3. Esther Duflo & Pascaline Dupas & Michael Kremer, 2011. "Peer Effects, Teacher Incentives, and the Impact of Tracking: Evidence from a Randomized Evaluation in Kenya," American Economic Review, American Economic Association, vol. 101(5), pages 1739-1774, August.
    4. Biroli, Pietro & Boneva, Teodora & Raja, Akash & Rauh, Christopher, 2022. "Parental beliefs about returns to child health investments," Journal of Econometrics, Elsevier, vol. 231(1), pages 33-57.
    5. Bach, Maximilian & Klein, Thilo & McNamara, Sarah, 2024. "Access, achievements, and aspirations: The impacts of school tracking on student outcomes," ZEW Discussion Papers 24-076, ZEW - Leibniz Centre for European Economic Research.
    6. Emily Beam & Priya Mukherjee & Laia Navarro-Sola, 2022. "Lowering Barriers to Remote Education: Experimental Impacts on Parental Responses and Learning," Working Papers 2022-030, Human Capital and Economic Opportunity Working Group.
    7. Eric A. Hanushek & Ludger Wössmann, 2006. "Does Educational Tracking Affect Performance and Inequality? Differences- in-Differences Evidence Across Countries," Economic Journal, Royal Economic Society, vol. 116(510), pages 63-76, March.
    8. Guill, Karin & Lintorf, Katrin, 2019. "Private tutoring when stakes are high: Insights from the transition from primary to secondary school in Germany," International Journal of Educational Development, Elsevier, vol. 65(C), pages 172-182.
    9. Christian Dustmann & Patrick A. Puhani & Uta Schönberg, 2017. "The Long‐term Effects of Early Track Choice," Economic Journal, Royal Economic Society, vol. 127(603), pages 1348-1380, August.
    10. Guido Imbens & Karthik Kalyanaraman, 2012. "Optimal Bandwidth Choice for the Regression Discontinuity Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(3), pages 933-959.
    11. Osikominu, Aderonke & Pfeifer, Gregor & Strohmaier, Kristina, 2021. "The Effects of Free Secondary School Track Choice: A Disaggregated Synthetic Control Approach," IZA Discussion Papers 14033, Institute of Labor Economics (IZA).
    12. Christian Dustmann & Patrick A. Puhani & Uta Schönberg, 2017. "The Long‐term Effects of Early Track Choice," Economic Journal, Royal Economic Society, vol. 127(603), pages 1348-1380, August.
    13. Sebastian Calonico & Matias D. Cattaneo & Max H. Farrell & Roc ́ıo Titiunik, 2017. "rdrobust: Software for regression-discontinuity designs," Stata Journal, StataCorp LLC, vol. 17(2), pages 372-404, June.
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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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