Does disclosure of school quality information increase disparity in academic achievement? The effect through the housing market

Yuta Kuroda

No 90, DSSR Discussion Papers from Graduate School of Economics and Management, Tohoku University

Abstract: This study investigates the effect of disclosure of information regarding school quality on the stratification of elementary schools and the widening disparity in the academic ability of students between schools. Using the event in which school-level test scores were first disclosed in October 2014 in Matsue City in Japan, I estimated the change of the effect of test scores on housing rents and population in a school district before and after disclosure. I found that school-level test scores had a significantly positive effect on housing rents of apartments intended for a family after the scores were disclosed. I also found that disclosure significantly increased the population of elementary school-aged individuals within the attendance district of school with high test scores. Additionally, I found that the relative standard deviation of test scores after disclosure became larger than that measured before disclosure. These results suggest that disparity in the academic ability of students between schools may expand through increased housing rents after disclosure of school-level test results.

Pages: 55 pages
Date: 2018-12
New Economics Papers: this item is included in nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:toh:dssraa:90

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