Working Paper: CEPR ID: DP16853
Authors: Antonio Dalla Zuanna; Kai Liu; Kjell G. Salvanes
Abstract: We study the effects of changing the rule that defines how students are selected into high schoolsin a context where school capacity is fixed. Schools for which demand exceeds supply must necessarilyexclude some students from enrollment. We provide a theoretical framework to analyze the overalleffect of policy changes, taking into account the crowding-out effect. By exploiting a reform thatimplemented 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.
Keywords: school choice; meritocratic access; crowding out
JEL Codes: I24; H70
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Reform (P41) | Overall negative effect on educational outcomes (I21) |
| Crowding-out of lower-ability students (D29) | Overall negative effect on educational outcomes (I21) |
| High-ability students gaining access to competitive schools (I24) | Minimal positive effects on high school completion (I21) |
| Exclusion of low-ability students from competitive schools (I24) | Significant negative impact on high school completion (I21) |
| Exclusion of low-ability students from competitive schools (I24) | Significant negative impact on university completion (I21) |
| Expansion of access to competitive schools for low-ability students from low SES backgrounds (I24) | Largest increase in average outcomes (O57) |
| Average effect of expanding access to competitive schools for high-ability students (I24) | Negative when considering crowding-out effects (E62) |