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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

    (University of Connecticut)

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 is 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 ahve a substantial minoritypopulation. We find evidence that this sorting proces 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 University of Connecticut, Department of Economics in its series Working papers with number 2002-08.

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Length: 36 pages
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:uct:uconnp:2002-08

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Postal: University of Connecticut 341 Mansfield Road, Unit 1063 Storrs, CT 06269-1063
Phone: (860) 486-4889
Fax: (860) 486-4463
Web page: http://www.econ.uconn.edu/
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  1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
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Citations

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Cited by:
  1. 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.
  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. Vicente Royuela & Miguel Vargas, 2010. "Residential Segregation: A Literature Review," Working Papers 7, Facultad de Economía y Empresa, Universidad Diego Portales.
  4. Terra McKinnish & Randall Walsh & Kirk White, 2008. "Who Gentrifies Low-Income Neighborhoods?," NBER Working Papers 14036, National Bureau of Economic Research, Inc.
  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. 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.
  7. Grodner, Andrew & Kniesner, Thomas J. & Bishop, John A., 2011. "Social Interactions in the Labor Market," IZA Discussion Papers 5934, Institute for the Study of Labor (IZA).
  8. Stephen L. Ross, 2005. "The Continuing Practice and Impact of Discrimination," Working papers 2005-19, University of Connecticut, Department of Economics, revised Jul 2006.
  9. 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.
  10. Eduardo Lora & Andrew Powell, 2011. "A New Way of Monitoring the Quality of Urban Life," Working Papers UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  11. 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.
  12. 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.
  13. 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.

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