Preferences and Heterogeneous Treatment Effects in a Public School Choice Lottery

Working Paper: NBER ID: w12145

Authors: Justine S. Hastings; Thomas J. Kane; Douglas O. Staiger

Abstract: This paper combines a model of parental school choice with randomized school lotteries in order to understand the effects of being assigned to a first-choice school on academic outcomes. We outline a simple framework in which those who place the highest weight on academics when choosing a school benefit the most academically when admitted. Although the average student does not improve academically when winning a school lottery, this average impact conceals a range of impacts for identifiable subgroups of students. Children of parents whose choices revealed a strong preference for academic quality experienced significant gains in test scores as a result of attending their chosen school, while children whose parents weighted academic characteristics less heavily experienced academic losses. This differential effect is largest for children of parents who forfeit the most in terms of utility gains from proximity and racial match to choose a school with stronger academics. Depending on one's own race and neighborhood, a preference for academic quality can either conflict with or be reinforced by other objectives, such as a desire for proximity and same-race peers.

Keywords: school choice; lottery; academic outcomes; parental preferences

JEL Codes: I20; I28


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Assignment to first-choice school (I23)Academic outcomes (I21)
Parental prioritization of academic quality (I21)Test scores (C12)
Parental prioritization of academic quality (I21)Academic outcomes (I21)
Assignment to first-choice school (I23)Decline in test scores for students with low academic preference (D29)
Winning a lottery (H27)No improvement in academic outcomes for average students (D29)
Weight placed on academics (I23)Variation in treatment effect (C22)
Demographic factors (e.g., race, income) (R20)Variation in academic outcomes (I24)

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