I read a story a very, very long time ago (probably in second or third grade) in a school text book. It was about a boy who has to choose a dragon egg among many or maybe it's a baby dragon, I'm not sure. It's like a tradition children in the place where it's set have to go through. I'm pretty sure he chooses a red one (egg or dragon) and then has to engage in a race with the other children and their dragons.

I'm trying to collect stories for my niece and would love to read her this one as I remember really enjoying it.

I think I read this same story in an English textbook years ago - I'm fairly sure it was a short story based on Anne McCaffrey's "Dragonriders of Pern" series. Most of that is very adult, but she has written some short stories. A quick Google search resulted in me thinking that it is "The Smallest Dragonboy," by Anne McCaffrey.

Here is a summary:
The Smallest Dragonboy (story - Concordances and Characters - a Wikia wiki)

And another link:
Welcome to the Worlds of Anne McCaffrey!

I hope that helps! :)

It was such a long time ago, that I'm not sure if this is it, but it sounds interesting. I'll definitely give it a read, Thank You!

You might look up my Father's Dragon or Jeremy Thatcher Dragon Hatcher.

Actually you are looking for Dragon's Blood, by Jane Yolen. Book I of the Pit Dragon Trilogy. Centered around Jakkin, a young bondslave who steals an egg and raises a dragon in the wild as a way to buy his freedom. (It was my favorite book!)