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

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Author Info

  • Cortes, Kalena E.

    ()
    (Texas A&M University)

  • Friedson, Andrew I.

    ()
    (Syracuse University)

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    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 both property values and the number of housing units in those areas. These effects are concentrated among schools that were very low-performing before the change in policy; property values and the number of housing units did not change discontinuously for previously high-performing school districts. We also find evidence that these strategic reactions were influenced by the number of local schooling options available: areas that had fewer school choices showed no reaction to the Top 10% Plan.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5026.

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    Length: 49 pages
    Date of creation: Jun 2010
    Date of revision:
    Handle: RePEc:iza:izadps:dp5026

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    Related research

    Keywords: property values; college choice; affirmative action; Top 10% Plan;

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    References

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    1. Lisa Barrow & Cecilia Elena Rouse, 2002. "Using Market Valuation to Assess Public School Spending," NBER Working Papers 9054, National Bureau of Economic Research, Inc.
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    Cited by:
    1. 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.
    2. 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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