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College matching mechanisms and matching stability: Evidence from a natural experiment in China

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  • Ha, Wei
  • Kang, Le
  • Song, Yang

Abstract

Matching mechanisms play a crucial role in the college admissions process, which in turn influence education and labor market outcomes. We exploit geographical and temporal variation in Chinese college admissions reform to provide new empirical evidence on how matching mechanisms affect matching stability. Consistent with theoretical findings by Chen and Kesten (2017), we show that in changing from the Immediate Acceptance (IA) mechanism to the Chinese parallel mechanism, a hybrid of IA and the Deferred Acceptance mechanisms, matching stability improved, as proxied by the level of stratification precision. This effect is stronger for provinces with wider first parallel choice bands in a nonlinear way.

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  • Ha, Wei & Kang, Le & Song, Yang, 2020. "College matching mechanisms and matching stability: Evidence from a natural experiment in China," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 206-226.
    • Handle: RePEc:eee:jeborg:v:175:y:2020:i:c:p:206-226
    DOI: 10.1016/j.jebo.2020.05.002
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    More about this item

    Keywords

    College admissions; School choice; Matching mechanism; Matching stability; Immediate Acceptance mechanism; Chinese parallel mechanism;
    All these keywords.

    JEL classification:

    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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