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Parents and students from different socioeconomic backgrounds value differently school characteristics, but the reasons behind this preference heterogeneity are not well understood. In the context of the centralized school assignment system in Mexico City, this study analyzes how a large household income shock affects choices over high school tracks exploiting the discontinuity in the assignment of the welfare program Oportunidades. The income shock significantly increases the probability of choosing the vocational track vis-a-vis the other more academic-oriented tracks. The findings suggest that the transfer relaxes the financial constraints that prevent relatively low-ability students from choosing the schooling option with higher labor market returns.

Academic ability --- Academic achievement --- Academic quality --- Academic year --- Access to university --- Achievement --- Achievement standards --- Assignment mechanism --- Average treatment effect --- Career --- College --- College education --- Curriculum --- Dropout rate --- Economic development --- Economics of education --- Education --- Education for all --- Education institutions --- Education level --- Education programs --- Educational modalities --- Educational outcomes --- Effective schools & teachers --- Elite schools --- Employment --- Enrollment --- Ethnic composition --- Exam --- Fees --- Geographic distribution --- Grade levels --- Graduate --- Graduation rate --- Grants --- High school --- High school level --- High school students --- High schools --- Higher education --- Human capital --- Information technology --- ITS --- Labor markets --- Learning --- LET --- Literature --- Low-income students --- Lower secondary --- Lower secondary school --- Middle school --- Middle schools --- Ministry of education --- Mobility --- Number of students --- Number of students per teacher --- Open access --- Parental education --- Pedagogical methods --- Primary education --- Public education --- Public school --- Public schools --- Returns to education --- Scholarships --- School attendance --- School census --- School completion --- School curriculum --- School days --- School facilities --- School infrastructure --- School level --- School principals --- School program --- School programs --- School quality --- School students --- School supplies --- School vouchers --- School year --- Schooling --- Secondary education --- Secondary enrollment --- Secondary school --- Secondary schooling --- Skills --- Statistics --- Student ability --- Students --- Students per teacher --- Study --- Teacher --- Teachers --- Technical education --- Technical schools --- Technical track --- Tertiary education --- Tertiary level --- Test scores --- Training --- Tuition --- Tuition costs --- Tuition fees --- University --- University degree --- University programs --- Upper secondary --- Upper secondary education --- Upper secondary level --- Vocational education --- Vocational school --- Vocational schools --- Vouchers --- Workshops