Abstract
We study the effect of opening a new high school on individual schooling decisions at the end of lower secondary education. The working sample covers all ninth graders between 2007–2008 and 2012–2013 in France. The two-way fixed-effect estimation strategy uses variation in time and space to estimate the causal effect of an increase in school supply. Opening a new high school significantly increases the probability of pupils from neighboring middle schools continuing in higher secondary education. The effect is exclusively due to new high schools proposing a vocational track. Furthermore, the effect is mainly driven by low-achieving students.
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