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Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values

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  • Kalena E. Cortes
  • Andrew I. Friedson

Abstract

Texas engaged in a large-scale policy experiment when it instituted the Top 10% Plan. This policy guarantees automatic admission to their state university of choice for all high school seniors who graduate in the top decile of their high school class. We find evidence that households reacted strategically to this policy by moving to neighborhoods with lower-performing schools, increasing property values in those areas. The effect is strongest among schools that were very low-performing before the change in policy. We also find evidence that these strategic reactions were influenced by the number of local schooling options available, as these effects of the Top 10% Plan were weaker in areas that had fewer school choices.

Suggested Citation

  • Kalena E. Cortes & Andrew I. Friedson, 2014. "Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(1), pages 51-76, March.
    • Handle: RePEc:ntj:journl:v:67:y:2014:i:1:p:51-76
    DOI: 10.17310/ntj.2014.1.02
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    3. Cortes, Kalena E., 2010. "Do Bans on Affirmative Action Hurt Minority Students? Evidence from the Texas Top 10% Plan," IZA Discussion Papers 5021, Institute of Labor Economics (IZA).
    4. Cullen, Julie Berry & Long, Mark C. & Reback, Randall, 2013. "Jockeying for position: Strategic high school choice under Texas' top ten percent plan," Journal of Public Economics, Elsevier, vol. 97(C), pages 32-48.
    5. Clapp, John M. & Nanda, Anupam & Ross, Stephen L., 2008. "Which school attributes matter? The influence of school district performance and demographic composition on property values," Journal of Urban Economics, Elsevier, vol. 63(2), pages 451-466, March.
    6. Kalena E. Cortes, 2010. "Do Bans on Affirmative Action Hurt Minority Students? Evidence from the Texas Top 10% Plan," Upjohn Working Papers 10-168, W.E. Upjohn Institute for Employment Research.
    7. Bogart, William T. & Cromwell, Brian A., 1997. "How Much More Is a Good School District Worth?," National Tax Journal, National Tax Association;National Tax Journal, vol. 50(2), pages 215-232, June.
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    11. Cortes, Kalena E., 2010. "Do bans on affirmative action hurt minority students? Evidence from the Texas Top 10% Plan," Economics of Education Review, Elsevier, vol. 29(6), pages 1110-1124, December.
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    Cited by:

    1. Cullen, Julie Berry & Long, Mark C. & Reback, Randall, 2013. "Jockeying for position: Strategic high school choice under Texas' top ten percent plan," Journal of Public Economics, Elsevier, vol. 97(C), pages 32-48.
    2. Liu, Haoyang & Song, Yang & Zhang, Xiaohan, 2022. "Moving to better opportunities? Housing market responses to the top 4% policy," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    3. Fernanda Estevan & Thomas Gall; Patrick Legros; Andrew F. Newman, 2014. "College Admission and High School Integration," Working Papers, Department of Economics 2014_26, University of São Paulo (FEA-USP).
    4. Cortes, Kalena E. & Klasik, Daniel, 2020. "Uniform Admissions, Unequal Access: Did the Top 10% Plan Increase Access to Selective Flagship Institutions?," IZA Discussion Papers 13988, Institute of Labor Economics (IZA).
    5. Andrew Bibler & Stephen B. Billings, 2020. "Win or Lose: Residential Sorting After a School Choice Lottery," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 457-472, July.
    6. Fajnzylber, Eduardo & Lara, Bernardo & León, Tomás, 2019. "Increased learning or GPA inflation? Evidence from GPA-based university admission in Chile," Economics of Education Review, Elsevier, vol. 72(C), pages 147-165.
    7. Cortes, Kalena E., 2010. "Do Bans on Affirmative Action Hurt Minority Students? Evidence from the Texas Top 10% Plan," IZA Discussion Papers 5021, Institute of Labor Economics (IZA).
    8. Cortes, Kalena E., 2010. "Do bans on affirmative action hurt minority students? Evidence from the Texas Top 10% Plan," Economics of Education Review, Elsevier, vol. 29(6), pages 1110-1124, December.
    9. Newman, Andrew & Gall, Thomas & Estevan, Fernanda, 2017. "The Top-Ten Way to Integrate High Schools," CEPR Discussion Papers 11910, C.E.P.R. Discussion Papers.
    10. Klasik, Daniel & Cortes, Kalena E., 2022. "Uniform admissions, unequal access: Did the top 10% plan increase access to selective flagship institutions?," Economics of Education Review, Elsevier, vol. 87(C).
    11. Friedson, Andrew I. & Bogin, Alexander N., 2013. "Winning pays: High school football championships and property values," Journal of Housing Economics, Elsevier, vol. 22(1), pages 54-61.

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    More about this item

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • I20 - Health, Education, and Welfare - - Education - - - General

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