JUE Insight: The impact of the school admission restriction policy on the housing market in Shanghai

Kangzhe Ding and Ryo Itoh

Journal of Urban Economics, 2023, vol. 136, issue C

Abstract: This study explores the influence of a regulation of informal school choice on the housing market in Shanghai to estimate the significance of loopholes in the school district system. The policy limited the priority for enrollment in a public elementary schools given to house owners in the school's district so that each housing property is given only one priority every five years; hence, informal acquisition of priorities through frequent resale of houses is limited. From the dataset of individual housing prices in Shanghai, we show that house price within the school districts of good schools increases after the policy. In contrast, house price decreases in areas that are neighboring the school but outside its school district because they are called “babysitting communities” and provide houses to live in for households who resell their houses earlier than graduation of their children. We also implement event study analysis to estimate time-varying influences of the policy, to show that the significant price increase occurs immediately after the policy implementation and shrinks a little in the short run.

Keywords: Housing price in Shanghai; School enrollment; Informal school choice; Five-years-one-family policy; Event study (search for similar items in EconPapers)
JEL-codes: I28 R31 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0094119023000372
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:136:y:2023:i:c:s0094119023000372

DOI: 10.1016/j.jue.2023.103568

Access Statistics for this article

Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange

More articles in Journal of Urban Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().