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School Choice and Neighborhood Sorting: Equilibrium Consequences of Geographic School Admissions

Author

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  • Greaves, Ellen

    (European University Institute)

  • Turon, Hélène

    (University of Bristol)

Abstract

Geographic school admissions criteria bind residential and school choices for some parents, and could create externalities in equilibrium for non-parents through displacement or higher rent. Through a dynamic structural model, we show that the policy decision of geographic versus non-geographic school admissions criteria has important implications for equilibrium outcomes in school and housing markets. Geographic admissions criteria segregate schools, but integrate neighborhoods according to income. Incorporating non-parents into the model challenges the existing understanding of how public schools affect the housing market: non-parent households dampen the equilibrium price premium around popular schools; non-parent households are never better off under geographic admissions.

Suggested Citation

  • Greaves, Ellen & Turon, Hélène, 2024. "School Choice and Neighborhood Sorting: Equilibrium Consequences of Geographic School Admissions," IZA Discussion Papers 16805, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16805
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    References listed on IDEAS

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    More about this item

    Keywords

    school choice; residential choice; school admissions criteria;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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