Summary
How do students select themselves into schools? While this question appears trivial and answerable via a simple analysis of the observed school choices in a system of free school choice, it is not due to three reasons. First, the observed, aggregated student characteristics of the chosen schools do not reveal parental school choice but rather the school composition. While the latter influences and is influenced by school choice, it is not equivalent. School composition here is a static concept, while school choice is dynamic, subject to student mobility or transitions during the course of education. We estimate a conditional logit models, and relax the conditional logit’s independence of irrelevant alternative assumption by estimating a nested logit model so that the school-specific error terms within a ‘nest’ can be correlated with one another. Comparative analyses are executed using data from all participating countries
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