DP16853 Pulled-in and Crowded-out: Heterogeneous Outcomes of Merit-based School Choice
|Author(s):||Antonio Dalla Zuanna, Kai Liu, Kjell G Salvanes|
|Publication Date:||January 2022|
|Keyword(s):||Crowding out, Meritocratic access, School choice|
|Programme Areas:||Labour Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=16853|
We study the effects of changing the rule that defines how students are selected into high schools in a context where school capacity is fixed. Schools for which demand exceeds supply must necessarily exclude some students from enrollment. We provide a theoretical framework to analyze the overall effect of policy changes, taking into account the crowding-out effect. By exploiting a reform that implemented merit-based allocation in Norway, we show that we can identify the relevant parameters. The reform had an overall negative effect because of the negative impact on crowded-out students. Different allocation rules would result in higher average outcomes.