Working Paper: NBER ID: w10666
Authors: Jesse Rothstein
Abstract: School choice policies may improve productivity if parents choose well-run schools, but not if parents primarily choose schools for their peer groups. Theoretically, high income families cluster near preferred schools in housing market equilibrium; these need only be effective schools if effectiveness is highly valued. If it is, equilibrium effectiveness sorting' will be more complete in markets offering more residential choice. Although effectiveness is unobserved to the econometrician, I discuss observable implications of effectiveness sorting. I find no evidence of a choice effect on sorting, indicating a small role for effectiveness in preferences and suggesting caution about choice's productivity implications.
Keywords: No keywords provided
JEL Codes: H7; I2; L1
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Improved reporting of school achievement (I21) | Altered dynamics of school choice (I21) |
| School effectiveness (I21) | Parental choices regarding residential location (R21) |
| Higher school effectiveness (I23) | Higher housing prices (R31) |
| Parental choices regarding residential location (R21) | Neighborhoods with better schools (R23) |
| School-level associations between student characteristics and outcomes (I24) | Strength in high-choice markets (L19) |