Heterogeneous responses to school track choice: Evidence from the repeal of binding track recommendations

This paper studies how introducing free school track choice in Germany’s between-school tracking system through a repeal of binding track recommendations affects track decisions by socio-economic status (SES). While highest track enrollment increases for previously ineligible high-SES students relative to comparable low-SES students, the SES gap does not increase. This is because previously eligible low-SES student become more likely to enroll in the highest track. A key mechanism for this response appears to be lower preferences for the intermediate track due to concerns about the inflow of mostly low-achieving and low-SES students from the lowest track after the repeal.