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The value of school choice opportunities

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  • Hörnig, Lukas
  • Schäfer, Max

Abstract

In this paper, we study the house price effects of local school choice opportunities among public primary schools using a rare and large-scale reform that abolished binding catchment areas in North RhineWestphalia, the largest German state with 18 million inhabitants. To estimate the reform's effect on valuations of houses, we compare houses with different local school choice sets, before and after the reform. We find that gaining access to a school within 2,000 meters and with a higher transition rate to the academic track (relative to the initial neighborhood school) increases house prices by 1.5 percent. This effect is larger when the more attractive school is closer and diminishes as distance grows. The full reform effect materializes roughly five years after reform onset.

Suggested Citation

  • Hörnig, Lukas & Schäfer, Max, 2024. "The value of school choice opportunities," Ruhr Economic Papers 1120, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:311190
    DOI: 10.4419/96973301
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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