School Choice, Student Sorting and Academic Performance

Short Summary:
This study examines the impact of school choice on academic achievement, by using differences in the number of schools across similar Romanian towns, generating variation in school choice for local students, who compete for seats via test scores. The author finds that more school choice results in increased sorting of students by admission scores across different schools. Sorting widens achievement gaps between high- and low-admission score students. High-scorers having access to better teachers and peer effects are the primary factors explaining these widening gaps. Lastly, between-school competition via school choice does not increase average achievement levels.