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The Effect of the Increasing Demand for Elite Schools on Stratification

Ricardo Estrada

No MWP2016/02, Economics Working Papers from European University Institute

Abstract: I use detailed applications data to document a case in which, contrary to prevailing concerns, increasing school stratification by ability co-existed with stable stratification by family income: Mexico City public high schools. To understand this puzzle, I develop a model that shows that the effect of an overall increase in the demand for elite schools on school stratification by family income is a horse race between the correlations of family income and ability, and family income and demand. My empirical analysis reveals an initial (and decreasing) demand gap by family income that explains the observed stability in stratification.

Keywords: School Choice; Stratification; Elite Schools; Aspirations Gap (search for similar items in EconPapers)
JEL-codes: D59 I21 I24 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-edu and nep-ure
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Working Paper: The Effect of the Increasing Demand for Elite Schools on Stratification (2017) Downloads
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