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The Effect of Housing Wealth on College Choice: Evidence from the Housing Boom

  • Michael F. Lovenheim
  • C. Lockwood Reynolds

We use NLSY97 data to examine how home price variation affects the quality of postsecondary schools students attend. We find a $10,000 increase in housing wealth increases the likelihood of public flagship university enrollment relative to nonflagship enrollment by 2.0 percent and decreases the relative probability of attending a community college by 1.6 percent. These effects are driven by lower-income families, predominantly by altering student application decisions. We also find home price changes affect direct quality measures of institutions students attend. Furthermore, for lower-income students, each $10,000 increase in home prices leads to a 1.8 percent increase in the likelihood of completing college.

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File URL: http://jhr.uwpress.org/cgi/reprint/48/1/1
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Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 48 (2013)
Issue (Month): 1 ()
Pages: 1-35

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Handle: RePEc:uwp:jhriss:v:48:y:2013:i:1:p:1-35
Contact details of provider: Web page: http://jhr.uwpress.org/

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