School Choice and Segregation: Evidence from an Admission Reform
This paper studies the effects of school choice on segregation. We analyze the effect of a reform in Stockholm that changed the admission system of public upper secondary schools. Before the year 2000, students were assigned to their nearest school, but from the fall of 2000 and onwards, the students can apply to any school within Stockholm City and admission decisions are based on grades only. We show that the distribution of students over schools changed dramatically as a response to extending school choice. As expected, the new admission policy increased segregation by ability. However, segregation by family background, as well as, segregation between immigrants and natives also increased significantly.
JEL: I21, I28, J24