Higher education , college admission problem , university admission
Abstract:
Applying a differences-in-differences strategy, I study the decentralization of
university admission as a natural experiment. Is the centralized or decentralized
procedure better suited to match prospective students to universities? The analysis
uses administrative data on all students within Germany and complements
the prominent theoretical literature on college admission. The results show that
the matching efficiency increased in course of the decentralization. This increase
is mainly driven by enabling law schools to abolish admission restrictions. The
matching quality is not significantly affected by the decentralization process but
suggests that abolishing admission restrictions could be associated with increasing
drop-out rates.
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