Working Paper: NBER ID: w30257
Authors: Adam Kapor; Mohit Karnani; Christopher Neilson
Abstract: We study the welfare and human-capital impacts of the configuration of on- and off-platform options in the context of Chile’s centralized higher education platform, leveraging administrative data and two policy changes: an expansion of the number of on-platform slots by approximately 40% and the introduction of a large scholarship program. We first show that more programs’ joining the platform led students to start college sooner and raised the share of students who graduated on time. We then develop a model of college applications, offers, waitlists, and matriculation choices, which we estimate using students’ ranked-ordered applications, on- and off-platform enrollment, and on-time graduation outcomes. When more programs join the platform, welfare increases, and the extent of aftermarket frictions matters less for welfare, enrollment, and graduation rates. High-SES students have greater access to off-platform options, and gains from platform expansion are larger for students from lower-SES backgrounds. Our results indicate that expanding the scope of a higher education platform can have real impacts on welfare and human capital.
Keywords: Higher Education; Centralized Assignment; Welfare Impacts; Off-Platform Options
JEL Codes: I20; L10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| expansion of the number of on-platform slots (O36) | students starting college sooner (A21) |
| expansion of the number of on-platform slots (O36) | share of students graduating on time (I21) |
| expansion of the number of on-platform slots (O36) | welfare increases (I38) |
| expansion of the number of on-platform slots (O36) | aftermarket frictions become less significant for welfare (F12) |
| high socioeconomic status (SES) students (I24) | greater access to off-platform options (D16) |
| gains from platform expansion (D26) | larger for students from lower SES backgrounds (I24) |
| off-platform options (G19) | negative impacts on the efficiency of the assignment system (I24) |
| inefficiencies caused by off-platform options (D61) | women and more disadvantaged students are most adversely affected (I24) |
| configuration of on and off-platform options (L24) | affects equity and efficiency of centralized assignment systems (D63) |