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The Housing and Educational Consequences of the School Choice Provisions of NCLB: Evidence from Charlotte, NC

Listed author(s):
  • Stephen Billings

    (University of North Carolina-Charlotte)

  • Eric J. Brunner

    (University of Connecticut)

  • Stephen L. Ross

    (University of Connecticut)

We examine the housing market, residential mobility, and academic performance changes that occur soon after a school fails to achieve Adequate Yearly Progress (AYP) (for the second time) in the Charlotte, NC school district. Charlotte is a school district with substantial opportunities for school choice and a number of oversubscribed, high quality schools. To comply with the 2002 No Child Left Behind (NCLB) Act, students within the attendance zone of Title 1 schools that fail to meet AYP are given an advantage in the lotteries for oversubscribed schools. That advantage may create an incentive for households with strong preferences for school choice and/or school quality to move into the attendance zones of failing schools in order to improve their likelihood of being admitted into high performing, oversubscribed schools. Consistent with that notion, we find that housing prices and the incomes of new homebuyers rise in the highest quality neighborhoods within attendance zones of failing schools in comparison to trends in nearby neighborhoods just outside of the attendance zone. We also find that residential mobility decreases while the probability of attending a non-assigned traditional school or magnet school increases in these high quality neighborhoods. Further analysis reveals that the effect of failing designation on non-assigned school attendance is driven largely by the school choice decisions of new residents who are most likely to exploit the school choice advantages offered by a second failure to achieve AYP.

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File URL: http://web2.uconn.edu/economics/working/2014-21.pdf
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Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2014-21.

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Length: 39 pages
Date of creation: Aug 2014
Handle: RePEc:uct:uconnp:2014-21
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University of Connecticut 365 Fairfield Way, Unit 1063 Storrs, CT 06269-1063

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Web page: http://www.econ.uconn.edu/

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  1. Joshua D. Angrist & Parag A. Pathak & Christopher R. Walters, 2013. "Explaining Charter School Effectiveness," American Economic Journal: Applied Economics, American Economic Association, vol. 5(4), pages 1-27, October.
  2. Rajashri Chakrabarti, 2013. "Vouchers, Public School Response, And The Role Of Incentives: Evidence From Florida," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 500-526, 01.
  3. Thomas S. Dee & Brian Jacob, 2011. "The impact of no Child Left Behind on student achievement," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(3), pages 418-446, Summer.
  4. Julie Berry Cullen & Brian A Jacob & Steven Levitt, 2006. "The Effect of School Choice on Participants: Evidence from Randomized Lotteries," Econometrica, Econometric Society, vol. 74(5), pages 1191-1230, 09.
  5. Joshua D. Angrist & Susan M. Dynarski & Thomas J. Kane & Parag A. Pathak & Christopher R. Walters, 2012. "Who Benefits from KIPP?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(4), pages 837-860, 09.
  6. Julie Berry Cullen & Randall Reback, 2006. "Tinkering Toward Accolades: School Gaming Under a Performance Accountability System," NBER Working Papers 12286, National Bureau of Economic Research, Inc.
  7. Paramita Dhar & Stephen L. Ross, 2009. "School Quality and Property Values: Re-examining the Boundary Approach," Working papers 2009-37, University of Connecticut, Department of Economics, revised May 2010.
  8. Dennis N. Epple & Richard Romano, 2003. "Neighborhood Schools, Choice, and the Distribution of Educational Benefits," NBER Chapters,in: The Economics of School Choice, pages 227-286 National Bureau of Economic Research, Inc.
  9. Brunner, Eric J. & Cho, Sung-Woo & Reback, Randall, 2012. "Mobility, housing markets, and schools: Estimating the effects of inter-district choice programs," Journal of Public Economics, Elsevier, vol. 96(7), pages 604-614.
  10. Maria Marta Ferreyra, 2007. "Estimating the Effects of Private School Vouchers in Multidistrict Economies," American Economic Review, American Economic Association, vol. 97(3), pages 789-817, June.
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