TY - JOUR
T1 - Aftermarket Frictions and the Cost of Off-Platform Options in Centralized Assignment Mechanisms
AU - Kapor, Adam
AU - Karnani, Mohit
AU - Neilson, Christopher
N1 - Publisher Copyright:
© 2024 The University of Chicago. All rights reserved.
PY - 2024/7
Y1 - 2024/7
N2 - We study the welfare and human capital impacts of colleges’ (non)par-ticipation in Chile’s centralized higher-education platform, leveraging administrative data and two policy changes: the introduction of a large scholarship program and the inclusion of additional institutions, which raised the number of on-platform slots by approximately 40%. We first show that the expansion of the platform raised on-time graduation rates. We then develop and estimate a model of college applications, of-fers, wait lists, matriculation, and graduation. When the platform ex-pands, welfare increases, and welfare, enrollment, and graduation rates are less sensitive to off-platform frictions. Gains are larger for students from lower-socioeconomic-status backgrounds.
AB - We study the welfare and human capital impacts of colleges’ (non)par-ticipation in Chile’s centralized higher-education platform, leveraging administrative data and two policy changes: the introduction of a large scholarship program and the inclusion of additional institutions, which raised the number of on-platform slots by approximately 40%. We first show that the expansion of the platform raised on-time graduation rates. We then develop and estimate a model of college applications, of-fers, wait lists, matriculation, and graduation. When the platform ex-pands, welfare increases, and welfare, enrollment, and graduation rates are less sensitive to off-platform frictions. Gains are larger for students from lower-socioeconomic-status backgrounds.
UR - http://www.scopus.com/inward/record.url?scp=85198088173&partnerID=8YFLogxK
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U2 - 10.1086/729068
DO - 10.1086/729068
M3 - Article
AN - SCOPUS:85198088173
SN - 0022-3808
VL - 132
SP - 2346
EP - 2395
JO - Journal of Political Economy
JF - Journal of Political Economy
IS - 7
ER -