Equity of educational outcomes and families’ school choices preferences: Evidence from education reform in China

Jing Xue, Zhenzhen Liu, Jian Tong and Chengxuan Li

Journal of Housing Economics, 2025, vol. 69, issue C

Abstract: Integrating equity of outcomes into China’s basic education equalization reform marks a significant step toward addressing the shortage of high-quality educational resources and spatial disparities in educational access. This paper develops a school choice model incorporating the quota allocation policy, and analyzes its impact on school choices and school district housing prices. Using a generalized difference-in-difference framework, we assess the impact of equity-of-outcomes policy in Shanghai, China. The empirical findings reveal that school district housing prices in Shanghai decline by 0.0466 % on average following the implementation of the quota allocation policy. Furthermore, families prioritize the competitive advantages of allocated quotas and minimum scores when making school choices. Additionally, the policy impact varies across income groups, with middle- and low-income households exhibiting greater responsiveness due to increased flexibility in school selection. By shifting parental preferences away from exclusive competition for elite junior high schools, the equity-of-outcomes reform fosters a more balanced distribution of student composition, ultimately enhancing educational quality and equity.

Keywords: Equalization of basic education; Equity of outcomes; School choice preferences; School district housing prices (search for similar items in EconPapers)
JEL-codes: I24 I25 I28 R21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhouse:v:69:y:2025:i:c:s1051137725000397

DOI: 10.1016/j.jhe.2025.102080

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