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Allocation of students in public schools: Theory and new evidence

Danny Cohen-Zada, Mark Gradstein and Ehud Reuven

Economics of Education Review, 2013, vol. 34, issue C, 96-106

Abstract: The allocation of educational resources to students of different socio-economic backgrounds has important policy implications since it affects individual educational outcomes as well as the future distribution of human capital. In this paper, we present a theoretical model showing that local school administrators have an incentive to allocate weaker students to smaller classes. Then, using a rich individual-level dataset on secondary public schools in Israel, we provide evidence that weaker students are, indeed, systematically placed in smaller classes, thus exhibiting a compensatory allocation scheme. Moreover, schools with enrollment levels just over cut-off points induced by a maximum class size rule are systematically weaker than schools with enrollment levels just under those cut-offs. This finding indicates that not only do local school administrators allocate students into classes in a compensatory manner, but they also manipulate the class-size rule to achieve such an allocation. Potential implications of these results are discussed.

Keywords: Resource allocation (search for similar items in EconPapers)
JEL-codes: I20 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:34:y:2013:i:c:p:96-106

DOI: 10.1016/j.econedurev.2013.01.013

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