Tracking versus Mixing in Secondary Education: Implications on Location Sorting and Intergenerational Mobility in Korea

Yong Suk Lee, Brown University

I examine whether the shift from an exam based high school entrance policy (“tracking”) to a district based lottery allocation mechanism (“mixing”) affects location sorting and intergenerational education mobility in Korea, where the transition occurred in the 1970s. Using a nationally representative sample, I find that the difference in difference estimates on income relative to ability increases with mixing. This effect is strongest in Seoul and the provincial capitals and the coefficient increases steadily until it peaks 4 to 5 years after the regime change to mixing. Also, I directly test for location sorting within Seoul utilizing a border discontinuity design on the change of land prices as well as district level panel data on population and tax revenues. I find a discrete jump in the change in housing land prices in the top school district. I also find that the ratio of school aged children and real estate tax revenue increases in top school districts.