Arbeitspapier

What happens when separate and unequal school districts merge?

We study the welfare effects of school district consolidation, i.e. the integration of disjoint school districts into a centralised clearinghouse. We show theoretically that, in the worst-case scenario, district consolidation may unambiguously reduce students' welfare, even if the student-optimal stable matching is consistently chosen. However, on average all students experience expected welfare gains from district consolidation, particularly those who belong to smaller and over-demanded districts. Using data from the Hungarian secondary school assignment mechanism, we compute the actual welfare gains from district consolidation in Budapest and compare these to our theoretical predictions. We empirically document substantial welfare gains from district consolidation for students, equivalent to attending a school five kilometres closer to the students' home addresses. As an important building block of our empirical strategy, we describe a method to consistently estimate students' preferences over schools and vice versa that does not fully assume that students report their preferences truthfully in the student-proposing deferred acceptance algorithm.

Sprache
Englisch

Erschienen in
Series: ZEW Discussion Papers ; No. 20-032

Klassifikation
Wirtschaft
Bargaining Theory; Matching Theory
Analysis of Education
Thema
school district consolidation
integration of matching markets
preference estimation without truth-telling

Ereignis
Geistige Schöpfung
(wer)
Aue, Robert
Klein, Thilo
Ortega, Josué
Ereignis
Veröffentlichung
(wer)
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
(wo)
Mannheim
(wann)
2020

Handle
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Aue, Robert
  • Klein, Thilo
  • Ortega, Josué
  • ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung

Entstanden

  • 2020

Ähnliche Objekte (12)