Pulled-in and Crowded-out: Heterogeneous Outcomes of Merit-based School Choice

Antonio Dalla-Zuanna, Kai Liu and Kjell G Salvanes

No 16853, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We study the effects of changing the rule that defines how students are selected into high schools in a context where school capacity is fixed. Schools for which demand exceeds supply must necessarily exclude some students from enrollment. We provide a theoretical framework to analyze the overall effect of policy changes, taking into account the crowding-out effect. By exploiting a reform that implemented merit-based allocation in Norway, we show that we can identify the relevant parameters. The reform had an overall negative effect because of the negative impact on crowded-out students. Different allocation rules would result in higher average outcomes.

Keywords: School choice; Meritocratic access; Crowding out (search for similar items in EconPapers)
JEL-codes: H70 I24 (search for similar items in EconPapers)
Date: 2022-01
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Working Paper: Pulled-in and Crowded-out: Heterogeneous Outcomes of Merit-based School Choice (2023)
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