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How Do Students Value an Elite Education? Evidence on Residential Location and Applications to NYC Specialized Schools

Author

Listed:
  • Lawrence Costa

    (Federal Housing Finance Agency)

  • JJ Naddeo

    (Georgetown University)

Abstract

Are students willing to endure long commutes for access to good schools? Using New York City Department of Education administrative data matched with Google transit directions, we find that longer commutes from home markedly deter students from applying to even the most elite high schools. For the top public school in New York State, a student with a 20 minute commute is 74% more likely to apply than one who lives 40 minutes away. For two other schools above the 99th percentile of performance, the differences are 234% and 137%. We also find that eighth grade exam scores relate to how well students understand the admissions process. As far as we are aware, we are the first to have the required location precision to track specific commutes for individual high school students. From a policy perspective, our findings imply that – while expanded school choice may be desirable – housing access near good schools is quite important.

Suggested Citation

  • Lawrence Costa & JJ Naddeo, 2023. "How Do Students Value an Elite Education? Evidence on Residential Location and Applications to NYC Specialized Schools," FHFA Staff Working Papers 23-04, Federal Housing Finance Agency.
    • Handle: RePEc:hfa:wpaper:23-04
    as

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    File URL: https://www.fhfa.gov/research/papers/wp2304
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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