The implications of digital school quality information for neighbourhood and school segregation: Evidence from a natural experiment in Los Angeles

Abstract

A digital information explosion has transformed cities’ residential and educational markets in ways that are still being uncovered. Although urban stratification scholars have increasingly scrutinised whether emerging digital platforms disrupt or reproduce longstanding segregation patterns, direct links between one theoretically important form of digital information – school quality data – and neighbourhood and school segregation are rarely drawn. To clarify these dynamics, we leverage an exogenous digital information shock, in which the Los Angeles Times’ website revealed measures of a particularly important school quality proxy – schools’ value-added effectiveness – for nearly all elementary schools in the Los Angeles Unified School District. Results suggest that although the information shock had no detectable effects on residential sorting or neighbourhood racial segregation, it did exert modest effects on school sorting – particularly for Latino and Asian students – albeit not in ways that materially diminished school racial segregation because the racial compositions of high- and low-value-added schools were broadly similar both before and after the information shock. We conclude that the urban stratification implications of digital information may be more nuanced than often appreciated, with effects operating through mechanisms beyond residential segregation and reflecting racial heterogeneity in constraints and preferences vis-à-vis specific types of information.