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School choice with independent versus consolidated districts

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Listed:
  • Klein, Thilo
  • Aue, Robert
  • Ortega, Josué

Abstract

This paper studies the welfare effects of school district consolidation. Using incomplete rank-ordered lists (ROLs) submitted for admission to the Hungarian secondary school system, we estimate complete ROLs assuming that parents do not use dominated strategies and that the matching outcome is stable. These estimates aid in constructing a counterfactual district-based assignment and discerning the factors driving parents' preferences over schools. We find that district consolidation leads to large welfare gains in Budapest, equivalent to students attending a school five kilometres closer to their residences. These gains offset the additional travel distances incurred in the consolidated assignment. 73% of matched students benefit from district consolidation, while fewer than 3% are assigned to a less preferred school. Students from smaller and less under-demanded districts benefit relatively more, as well as those with high academic ability. Using reported preferences instead of estimated ones also yields large gains from district consolidation.

Suggested Citation

  • Klein, Thilo & Aue, Robert & Ortega, Josué, 2024. "School choice with independent versus consolidated districts," Games and Economic Behavior, Elsevier, vol. 147(C), pages 170-205.
  • Handle: RePEc:eee:gamebe:v:147:y:2024:i:c:p:170-205
    DOI: 10.1016/j.geb.2024.07.003
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    More about this item

    Keywords

    District consolidation; School choice;

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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