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Residential Location and Education in the United States

Eric Hanushek () and Kuzey Yilmaz ()
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Kuzey Yilmaz: Cleveland State University

No GRU_2020_017, GRU Working Paper Series from City University of Hong Kong, Department of Economics and Finance, Global Research Unit

Abstract: The educational story in the United States is thoroughly intertwined with residential location. Poverty, race, and schooling are very highly correlated with location, and the institutional structure of public education decision making in the United States leads to a close linkage of location, housing, and education. As a result, residential decisions have added implications for households. Moreover, the reliance on the local tax for a large portion of school funding implies that the governmental grant system has an important effect on both locational decisions and on educational outcomes. This chapter provides a theoretical and empirical discussion of the interaction of location and schooling. In contrast to this discussion that emphasizes the behavior of households in choosing a location, a range of policy decisions have explicitly been based on location but for the most part assuming that households will not react to the policies. These policies aim to alter the attractiveness of a local school district but generally ignore any general equilibrium effects from household behavior. Here we also review some of the more important policies affecting the location-schooling equilibrium.

Keywords: Residential Segregation; Educational Finance; Government Policy (search for similar items in EconPapers)
JEL-codes: H4 I2 R2 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2020-07-03
New Economics Papers: this item is included in nep-edu and nep-ure
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