Controlling Administrative Discretion Promotes Social Equity? Evidence from a Natural Experiment

Although social equity has been a formal pillar of public administration for decades, identifying mechanisms through which public officials inadvertently reproduce unfair conditions remains a relevant topic. In particular, it is important to understand how the habits and practices of street-level bureaucrats may result in an unjust allocation of public resources. This article provides evidence on how the administrative discretion conferred on school principals may result in an efficient but unfair condition regarding the allocation of students across schools, thus undermining social equity. By exploiting a natural experiment, we are able to provide reliable evidence on how controlling administrative discretion decreases the segregation of students based on their socioeconomic status.