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Private Schools and Residential Choices: Accessibility, Mobility, and Welfare

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  • Hanushek Eric A

    () (Stanford University)

  • Sarpça Sinan

    () (Koç University)

  • Yilmaz Kuzey

    () (Koç University)

Abstract

Private schools free households from a strict link between residential location decisions and the tax-school quality bundles they consume. In order to study the impact of private schools on educational outcomes, we develop a general equilibrium model that simultaneously incorporates locational choice built on access and locational choice built on tax-school quality attributes of jurisdictions. We conclude that private school choice enhances the welfare of all households—both those attending private schools and those attending public schools—while also working to reduce the amount of housing and school segregation in equilibrium. Investigation of alternative school policies indicates that greater choice, including using targeted school vouchers, can improve welfare and achievement. Finally, we demonstrate how the fiscal burden arising from some households paying less taxes than they consume in public services varies significantly with the structure of school choice options.

Suggested Citation

  • Hanushek Eric A & Sarpça Sinan & Yilmaz Kuzey, 2011. "Private Schools and Residential Choices: Accessibility, Mobility, and Welfare," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-34, August.
  • Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:44
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    References listed on IDEAS

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    Cited by:

    1. Yuan Cheng & John K. Dagsvik & Xuehui Han, 2014. "Real Estate Market Policy and Household Demand for Housing," Pacific Economic Review, Wiley Blackwell, vol. 19(2), pages 237-253, May.
    2. Leung, Charles Ka Yui & Sarpça, Sinan & Yilmaz, Kuzey, 2012. "Public housing units vs. housing vouchers: Accessibility, local public goods, and welfare," Journal of Housing Economics, Elsevier, vol. 21(4), pages 310-321.
    3. Paolo Melindi-Ghidi, 2016. "Inequality, Educational Choice and Public School Quality in Income Mixing Communities," AMSE Working Papers 1629, Aix-Marseille School of Economics, Marseille, France.
    4. Alkan, Ahmet & Anbarci, Nejat & Sarpça, Sinan, 2012. "An exploration in school formation: Income vs. Ability," Economics Letters, Elsevier, vol. 117(2), pages 500-504.
    5. Crystal Zhan, 2015. "School and neighborhood: residential location choice of immigrant parents in the Los Angeles Metropolitan area," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(3), pages 737-783, July.

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