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Preferences, Selection, and Value Added: A Structural Approach

Pelin Akyol and Kala Krishna ()

No 20013, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper investigates two main questions: i) What do applicants take into consideration when choosing a high school? ii) To what extent do schools contribute to their students' academic success? To answer these questions, we model students' preferences and derive demand for each school by taking each student's feasible set of schools into account. We obtain average valuation placed on each school from market clearing conditions. Next, we investigate what drives these valuations by carefully controlling for endogeneity using a set of creative instruments suggested by our model. Finally, controlling for mean reversion bias, we look at each school's value-added. We find that students infer the quality of a school from its selectivity and past performance on the university entrance exam. However, the evidence on the value- added by schools shows that highly valued or selective schools do not have high value- added on their students' academic outcomes.

JEL-codes: I20 I21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-ure
Date: 2014-03
Note: ED PE
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Published as Şaziye Pelin Akyol & Kala Krishna, 2016. "Preferences, Selection, and Value Added: A Structural Approach," European Economic Review, .

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Journal Article: Preferences, selection, and value added: A structural approach (2017) Downloads
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