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Schools and housing markets: an examination of school segregation and performance in Connecticut

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  • John M. Clapp
  • Stephen L. Ross

Abstract

This paper examines the relationship between house price levels, school performance, and the racial and ethnic composition of Connecticut school districts between 1995 and 2000. A panel of Connecticut school districts over both time and labor market areas are used to estimate a simultaneous equations model describing the determinants of these variables. Specifically, school district changes in price level, school performance, and racial and ethnic compositions depend upon each other, labor market wide changes in these variables, and the deviation of each school district from the overall metropolitan area. The specification is based on the differencing of dependent variables, as opposed to the use of level or fixed effects models and lagging level variables beyond the period over which change is considered; as a result the model is robust to persistence in the sample. Identification of the simultaneous system arises from the presence of multiple labor market areas in the sample, and the assumption that labor market changes in a variable due not directly influence the allocation of households across towns within a labor market area. We find that towns in labor markets that experience an inflow of minority households have greater increases in percent minority if those towns already have a substantial minority population. We find evidence that this sorting process is reflected in housing price changes in the low priced segment of the housing market, not in the middle and upper segments.

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Bibliographic Info

Paper provided by Federal Reserve Bank of Chicago in its series Proceedings with number 910.

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Date of creation: 2001
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Publication status: Published in Understanding isolation and change in urban neighborhoods
Handle: RePEc:fip:fedhpr:910

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Keywords: Education;

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Cited by:
  1. Steven Carter, 2008. "Court-ordered Busing and Housing Prices: The Case of Pasadena and San Marino," Journal of Real Estate Research, American Real Estate Society, vol. 30(3), pages 377-394.
  2. Clapp, John M. & Wang, Yazhen, 2006. "Defining neighborhood boundaries: Are census tracts obsolete?," Journal of Urban Economics, Elsevier, vol. 59(2), pages 259-284, March.
  3. 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.
  4. Claudio Agostini, 2010. "Pobreza, Desigualdad y Segregación en la Región Metropolitana," ILADES-Georgetown University Working Papers inv242, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  5. Thomas J. Kniesner & Andrew Grodner & John A Bishop, 2011. "Social Interactions in the Labor Market," Center for Policy Research Working Papers 133, Center for Policy Research, Maxwell School, Syracuse University.
  6. Feng, Hao & Lu, Ming, 2013. "School quality and housing prices: Empirical evidence from a natural experiment in Shanghai, China," Journal of Housing Economics, Elsevier, vol. 22(4), pages 291-307.
  7. Terra McKinnish & Randall Walsh & T. Kirk White, 2008. "Who Gentrifies Low Income Neighborhoods?," Working Papers 08-02, Center for Economic Studies, U.S. Census Bureau.
  8. Stephen L. Ross, 2008. "Understanding Racial Segregation: What is known about the Effect of Housing Discrimination," Working papers 2008-15, University of Connecticut, Department of Economics, revised Nov 2008.
  9. Vicente Royuela & Miguel Vargas, 2010. "Residential Segregation: A Literature Review," Working Papers 7, Facultad de Economía y Empresa, Universidad Diego Portales.
  10. Eduardo Lora & Andrew Powell, 2011. "A New Way of Monitoring the Quality of Urban Life," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  11. Miguel Vargas & Alejandro Corvarlan, 2013. "Segregation and Social Conflict: An Empirical Analysis," Working Papers 42, Facultad de Economía y Empresa, Universidad Diego Portales.
  12. Stephen L. Ross, 2005. "Commentary on "Exogenous shocks and the dynamics of city growth: evidence from New York"," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 75-77.
  13. Beatty, Timothy K.M. & Sommervoll, Dag Einar, 2012. "Discrimination in rental markets: Evidence from Norway," Journal of Housing Economics, Elsevier, vol. 21(2), pages 121-130.
  14. Miguel Vargas Román, 2012. "Economic Residential Segregation and Educational Achievements: Evidence from Chile," ERSA conference papers ersa12p170, European Regional Science Association.
  15. Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
  16. Dionysia Lambiri & Miguel Vargas, 2011. "Residential Segregation and Public Housing Policy, The Case of Chile," Working Papers 29, Facultad de Economía y Empresa, Universidad Diego Portales.
  17. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2003. "A Unified Framework for Estimating Preferences for Schools and Neighborhoods," Working Papers 872, Economic Growth Center, Yale University.

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