The dynamics of socio-economic segregation: What role do private schools play?

Although residential sorting along socio-economic lines has increased in many cities across Europe, few studies have examined what drives changes in segregation over time. This study looks at the role of school choice expansion in shaping patterns of spatial inequality. We adopt a longitudinal perspective and investigate how the increasing availability of private primary schools is related to the dynamics of socio-economic segregation in German cities. Drawing on a uniquely compiled data set for the years 2005 to 2014 that includes 74 large and medium-sized cities with over 3500 districts, we estimate linear panel regression models with city fixed effects. The analyses show that an increase in the share of private primary schools is associated with a decrease in the segregation of poverty in West German cities but not in East German ones. The association in West Germany is particularly pronounced in local contexts characterised by growing rates of poor residents and growing proportions of young children. Results imply that school choice availability may promote residential integration and at the same time reinforce school segregation.