School Quality, Neighborhoods and Housing Prices: The Impacts of School Desegregation

56 Pages Posted: 20 Jun 2005 Last revised: 5 Jul 2010

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)

Douglas Staiger

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

Stephanie Riegg

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

Date Written: May 2005

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 redrew a number of school boundaries. We use two different sources of variation to disentangle the effect of schools and other neighborhood characteristics: differences in housing prices along assignment zone boundaries and changes in housing prices following the change in school assignments. 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. Moreover, house prices seem to react to changes in school assignments. Part of the impact of school assignments is mediated by subsequent changes in the characteristics of the population living in the school zone.

Suggested Citation

Kane, Thomas J. and Staiger, Douglas and Riegg, Stephanie, School Quality, Neighborhoods and Housing Prices: The Impacts of School Desegregation (May 2005). NBER Working Paper No. w11347. Available at SSRN: https://ssrn.com/abstract=727127

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

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

Stephanie Riegg

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

Box 951477
Los Angeles, CA 90095-1477
United States

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