School Choice Design, Risk Aversion, and Cardinal Segregation

Caterina Calsamiglia, Francisco Martínez-Mora and Antonio Miralles
Additional contact information
Antonio Miralles: University of Messina

No 13464, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We embed the problem of public school choice design in a model of local provision of education. We define cardinal (student) segregation as that emerging when families with identical ordinal preferences submit different rankings of schools in a centralised school choice procedure. With the Boston Mechanism (BM), when higher types are less risk-averse, and there is sufficient vertical differentiation of schools, any equilibrium presents cardinal segregation. Transportation costs facilitate the emergence of cardinal segregation as does competition from private schools. Furthermore, the latter renders the best public schools more elitist. The Deferred Acceptance mechanism is resilient to cardinal segregation.

Keywords: school choice mechanisms; cardinal segregation; segregation; peer effects; local public goods (search for similar items in EconPapers)
JEL-codes: D78 H4 I21 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2020-07
New Economics Papers: this item is included in nep-des, nep-edu and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Economic Journal, 2021, 131 (635), 1081–1104

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Journal Article: School Choice Design, Risk Aversion and Cardinal Segregation (2021)
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