School Quality, Neighborhoods, and Housing Prices

Posted: 29 Feb 2008

See all articles by Thomas J. Kane

Thomas J. Kane

University of California, Los Angeles (UCLA) - School of Public Policy & Social Research; National Bureau of Economic Research (NBER)

Stephanie Riegg

University of California, Los Angeles (UCLA) - Department of Economics

Douglas Staiger

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: 2006

Abstract

We study the relationship between school characteristics and housing prices in Mecklenburg County, North Carolina, between 1994 and 2001. During this period, the school district was operating under a court-imposed desegregation order and drew school boundaries so that students living in the same neighborhoods were often sent to very different schools in terms of racial mix and average test scores of the students. We use differences in housing prices along assignment zone boundaries to disentangle the effect of schools and other neighborhood characteristics. We find systematic differences in house prices along school boundaries although the impact of schools is only one-quarter as large as the naive cross-sectional estimates would imply. Part of the impact of school assignments is mediated by differences in the characteristics of the population and the quality of the housing stock that have arisen on either side of the school assignment boundary.

Suggested Citation

Kane, Thomas J. and Riegg, Stephanie and Staiger, Douglas, School Quality, Neighborhoods, and Housing Prices ( 2006). American Law and Economics Review, Vol. 8, Issue 2, pp. 183-212, 2006. Available at SSRN: https://ssrn.com/abstract=1097902 or http://dx.doi.org/10.1093/aler/ahl007

Thomas J. Kane (Contact Author)

University of California, Los Angeles (UCLA) - School of Public Policy & Social Research ( email )

Box 951656
Los Angeles, CA 90095
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Stephanie Riegg

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
Los Angeles, CA 90095-1477
United States

Douglas Staiger

Dartmouth College - Department of Economics ( email )

Hanover, NH 03755
United States
603-643-2979 (Phone)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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