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Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values

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  • Cortes, Kalena E.

    () (Texas A&M University)

  • Friedson, Andrew I.

    () (University of Colorado Denver)

Abstract

Texas engaged in a large-scale policy experiment when it instituted the Top 10% Plan. This policy guarantees automatic admission to their state university of choice for all high school seniors who graduate in the top decile of their high school class. We find evidence that households reacted strategically to this policy by moving to neighborhoods with lower-performing schools, increasing both property values and the number of housing units in those areas. These effects are concentrated among schools that were very low-performing before the change in policy; property values and the number of housing units did not change discontinuously for previously high-performing school districts. We also find evidence that these strategic reactions were influenced by the number of local schooling options available: areas that had fewer school choices showed no reaction to the Top 10% Plan.

Suggested Citation

  • Cortes, Kalena E. & Friedson, Andrew I., 2010. "Ranking Up by Moving Out: The Effect of the Texas Top 10% Plan on Property Values," IZA Discussion Papers 5026, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5026
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    References listed on IDEAS

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    1. Barrow, Lisa & Rouse, Cecilia Elena, 2004. "Using market valuation to assess public school spending," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1747-1769, August.
    2. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 577-599.
    3. Bogart, William T. & Cromwell, Brian A., 1997. "How Much More is a Good School District Worth?," National Tax Journal, National Tax Association, vol. 50(2), pages 215-32, June.
    4. Cullen, Julie Berry & Long, Mark C. & Reback, Randall, 2013. "Jockeying for position: Strategic high school choice under Texas' top ten percent plan," Journal of Public Economics, Elsevier, vol. 97(C), pages 32-48.
    5. Chernick, Howard & Langley, Adam & Reschovsky, Andrew, 2011. "The impact of the Great Recession and the housing crisis on the financing of America's largest cities," Regional Science and Urban Economics, Elsevier, vol. 41(4), pages 372-381, July.
    6. 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.
    7. Bogart, William T. & Cromwell, Brian A., 1997. "How Much More Is a Good School District Worth?," National Tax Journal, National Tax Association, vol. 50(2), pages 215-232, June.
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    Cited by:

    1. Cortes, Kalena E., 2010. "Do Bans on Affirmative Action Hurt Minority Students? Evidence from the Texas Top 10% Plan," IZA Discussion Papers 5021, Institute for the Study of Labor (IZA).
    2. Cullen, Julie Berry & Long, Mark C. & Reback, Randall, 2013. "Jockeying for position: Strategic high school choice under Texas' top ten percent plan," Journal of Public Economics, Elsevier, vol. 97(C), pages 32-48.
    3. Fernanda Estevan & Thomas Gall; Patrick Legros; Andrew F. Newman, 2014. "College Admission and High School Integration," Working Papers, Department of Economics 2014_26, University of São Paulo (FEA-USP).
    4. Cortes, Kalena E., 2010. "Do bans on affirmative action hurt minority students? Evidence from the Texas Top 10% Plan," Economics of Education Review, Elsevier, vol. 29(6), pages 1110-1124, December.
    5. Friedson, Andrew I. & Bogin, Alexander N., 2013. "Winning pays: High school football championships and property values," Journal of Housing Economics, Elsevier, vol. 22(1), pages 54-61.

    More about this item

    Keywords

    property values; college choice; affirmative action; Top 10% Plan;

    JEL classification:

    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • I20 - Health, Education, and Welfare - - Education - - - General

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