Chinese College Admissions and School Choice Reforms: A Theoretical Analysis

Abstract

Each year approximately 10 million high school seniors in China compete for 6 million seats through a centralized college admissions system. Within the last decade, many provinces have transitioned from a “sequential” to a “parallel” mechanism to make their admissions decisions. In this study, we characterize a parametric family of application-rejection assignment mechanisms, including the sequential, deferred acceptance, and parallel mechanisms in a nested framework. We show that all of the provinces that have abandoned the sequential mechanism have moved toward less manipulable and more stable mechanisms. We also show that existing empirical evidence is consistent with our theoretical predictions.