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
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: I21 R30 H41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:91:y:2016:i:c:p:104-121
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 Dana Niculescu ().