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Demonstrates that under heterogeneous student preferences across curricula (such as commercial versus academic/industrial tracks), student sorting increases average aggregate utility without imposing negative peer externalities on non-participants.
Identifies ideological polarization and radical instruction as distinct negative externality channels in voucher markets that operate independently of peer sorting and school capacity constraints.
Free-lunch eligible students comprised 50.6% of applicants in randomized marginal priority groups at high-performing schools compared to only 33.6% in waitlisted groups, significantly increasing low-income admission rates and counteracting strategic hedging incentives.