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Neighborhood effects on educational outcomes: New evidence from public rental housing in Hong Kong

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  • Zheng Chang

Abstract

Approximately 2 million residents in Hong Kong live in public rental housing (PRH), and PRH allocation is determined through computer randomization. This study exploits this random allocation to investigate neighborhood effects on children's educational outcomes among those raised in PRH in Hong Kong. Using data from Hong Kong's 5% population census (2001, 2006, 2011), the study finds that children from low‐poverty neighborhoods have approximately 4–6% higher enrollment rates in high school and precollege programs. The findings also highlight the exposure effect of neighborhoods, as the impact is observed only among children who have resided in the same neighborhood for more than 5 years. Factors such as family income, school quality, and the degree of social exposure do not mitigate these outcomes. This research broadens the predominantly Western‐focused literature on neighborhood effects and provides valuable insights for urban planning and housing policies aimed at improving educational opportunities in high‐density urban settings.

Suggested Citation

  • Zheng Chang, 2025. "Neighborhood effects on educational outcomes: New evidence from public rental housing in Hong Kong," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 53(6), pages 1258-1283, November.
    • Handle: RePEc:bla:reesec:v:53:y:2025:i:6:p:1258-1283
    DOI: 10.1111/1540-6229.70003
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