School Segregation and Outside Options
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Date
2025
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Publisher
Bloomsbury Publishing Plc.
Abstract
We study an allocation problem in which students share school preferences but differ in their outside options. We examine the ex-ante Pareto efficient (and weakly fair) allocations. Their main qualitative property is positive sorting; students with higher outside options are assigned to better schools. This result points out the tension between the policy goals of desegregation and efficiency and cautions policymakers about the difficulty of aligning these two objectives.
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Keywords
economics, efficiency, positive sorting, school choice, segregation, theory