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Houses and schools: Valuation of school quality through the housing market

  • Machin, Stephen

This paper offers a critical appraisal of the now sizable empirical literature that values school quality and performance through housing valuations. This literature consistently finds housing valuations to be significantly higher in places where measured school quality is higher, implying a strong parental willingness to pay to get their children educated in better performing schools. This conclusion emerges from studies undertaken in a number of countries, using a variety of identification strategies, and at different parts of the education sequence that children follow.

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Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 6 ()
Pages: 723-729

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Handle: RePEc:eee:labeco:v:18:y:2011:i:6:p:723-729
DOI: 10.1016/j.labeco.2011.05.005
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  13. Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2008. "The Value of School Facilities: Evidence from a Dynamic Regression Discontinuity Design," NBER Working Papers 14516, National Bureau of Economic Research, Inc.
  14. 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.
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  17. Thomas J. Nechyba, 2003. "Introducing School Choice into Multidistrict Public School Systems," NBER Chapters, in: The Economics of School Choice, pages 145-194 National Bureau of Economic Research, Inc.
  18. Sheppard, Stephen, 1999. "Hedonic analysis of housing markets," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 41, pages 1595-1635 Elsevier.
  19. Steve Gibbons & Shqiponja Telhaj, 2008. "Peers and Achievement in England's Secondary Schools," SERC Discussion Papers 0001, Spatial Economics Research Centre, LSE.
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  28. Leslie Rosenthal, 2003. "The Value of Secondary School Quality," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(3), pages 329-355, 07.
  29. Stephen Gibbons & Stephen Machin, 2008. "Valuing school quality, better transport, and lower crime: evidence from house prices," Oxford Review of Economic Policy, Oxford University Press, vol. 24(1), pages 99-119, spring.
  30. Victor Lavy & M. Daniele Paserman & Analia Schlosser, 2008. "Inside the Black of Box of Ability Peer Effects: Evidence from Variation in the Proportion of Low Achievers in the Classroom," NBER Working Papers 14415, National Bureau of Economic Research, Inc.
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