Seminar: Elisabet Olme (University of Gothenburg) & Dany Kessel (Södertörn University) "Are parents uniformed?"
In this paper, we study the effects of providing information about school performance on school choice behavior and general equilibrium outcomes. In 2016, we conducted a randomized experiment in a Swedish municipality among the population of households with children about to start the 7 grade. Households selected to be part of the treatment received information about the absolute performance on standardized tests of all schools as well as performance adjusted for the student composition. We find a reaction to the information on adjusted performance but not to the absolute performance. The share of households that choose a top performing school (in terms of adjusted performance) increase with 5.4 percentage points (corresponding to 16%) due to the treatment. This effect is concentrated to high-skilled households with a non-foreign background. Using simulations, we study at the effect on assignment. We find that the changes in choice behavior translates into changes in assignment but that the effects are muted due to institutional constraints. We do however also find that the initial changes in assignments are propagated though the system. Finally, we find that there is a significant reduction in school segregation in terms of foreign background.