Does the market value value-added? Evidence from housing prices after a public release of school and teacher value-added

Scott Imberman and Michael Lovenheim

Journal of Urban Economics, 2016, vol. 91, issue C, 104-121

Abstract: Value-added data have become an increasingly common evaluation tool for schools and teachers. Many school districts have begun to adopt these methods and have released results publicly. In this paper, we use the unique public release of value-added data in Los Angeles to identify how this measure of school quality is capitalized into housing prices. Via difference-in-differences, we find no evidence of a response to either school or teacher value-added rank, even though school-zone boundary fixed-effects estimates indicate that test score levels are capitalized into home prices. Given ample evidence that this information was new to residents, widely dispersed, and easily available, our results suggest that people did not significantly value it on the margin. This has implications for the effectiveness of providing value-added information as a tool to help parents choose schools.

Keywords: Value-added; Housing prices; School quality capitalization; Education (search for similar items in EconPapers)
JEL-codes: H41 I21 R30 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (38)

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Related works:
Working Paper: Does the Market Value Value-Added? Evidence from Housing Prices after a Public Release of School and Teacher Value-Added (2013)
Working Paper: Does the Market Value Value-Added? Evidence from Housing Prices After a Public Release of School and Teacher Value-Added (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:91:y:2016:i:c:p:104-121

DOI: 10.1016/j.jue.2015.06.001

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