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The effect of school quality on housing rents: Evidence from Matsue city in Japan

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  • Kuroda, Yuta

Abstract

This study investigates the effect of public school quality on housing rents within a school district. I estimate the causal effect of school quality as measured by average test scores on housing rents, by using a regression discontinuity design to control for unobserved characteristics of neighborhoods. Specifically, I focus on apartment buildings located within school attendance district boundaries. I find that school quality has a significantly positive effect on housing rents of apartments for families, but school quality does not have a significant effect on housing rents of dwellings for single people. These results show that parents are willing to pay more to send their children to a better school.

Suggested Citation

  • Kuroda, Yuta, 2018. "The effect of school quality on housing rents: Evidence from Matsue city in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 50(C), pages 16-25.
    • Handle: RePEc:eee:jjieco:v:50:y:2018:i:c:p:16-25
    DOI: 10.1016/j.jjie.2018.05.002
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    References listed on IDEAS

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    1. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
    2. 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.
    3. David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
    4. Bogart, William T. & Cromwell, Brian A., 2000. "How Much Is a Neighborhood School Worth?," Journal of Urban Economics, Elsevier, vol. 47(2), pages 280-305, March.
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    Cited by:

    1. Ha Thi Khanh Van & Tran Vinh Ha & Takumi Asada & Mikiharu Arimura, 2022. "Vacancy Dwellings Spatial Distribution—The Determinants and Policy Implications in the City of Sapporo, Japan," Sustainability, MDPI, vol. 14(19), pages 1-26, September.
    2. Rajapaksa, Darshana & Gono, Marcel & Wilson, Clevo & Managi, Shunsuke & Lee, Boon & Hoang, Viet-Ngu, 2020. "The demand for education: The impacts of good schools on property values in Brisbane, Australia," Land Use Policy, Elsevier, vol. 97(C).
    3. Hu, Lirong & He, Shenjing & Luo, Yun & Su, Shiliang & Xin, Jing & Weng, Min, 2020. "A social-media-based approach to assessing the effectiveness of equitable housing policy in mitigating education accessibility induced social inequalities in Shanghai, China," Land Use Policy, Elsevier, vol. 94(C).
    4. Mathur, Shishir, 2022. "Non-linear and weakly monotonic relationship between school quality and house prices," Land Use Policy, Elsevier, vol. 113(C).
    5. Kubota, Kohei & Ito, Takahiro & Ohtake, Fumio, 2019. "Long-term consequences of group work in Japanese public elementary schools," Japan and the World Economy, Elsevier, vol. 52(C).
    6. Yuta Kuroda, 2022. "What does the disclosure of school quality information bring? The effect through the housing market," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 125-149, January.

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    More about this item

    Keywords

    Housing rent; School quality; School district; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • I20 - Health, Education, and Welfare - - Education - - - General

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