“…It is shown in many cases, such as Germany (Riedel et al, 2009), various cities in the USA (Burgess & Briggs, 2006;Bifulco et al, 2009), England (Burgess et al, 2011;West, 2006), and even increasingly in Finland (Seppänen, 2003;Poikolainen, 2012) that choice tends to gather students from better socioeconomic backgrounds into certain schools, creating not only positive peer effects, but also a negative externality for the rest of students. Uncontrolled choice has increased ethnic and social segregation, which can result in even more social costs than residential segregation (Bifulco et al, 2009). Furthermore, due to limited economic, cultural and social resources, school choice tends to constrain disadvantaged families from practising their choice.…”