Do better schools matter? Parental valuation of elementary education

Sandra Black

No 9729, Research Paper from Federal Reserve Bank of New York

Abstract: The evaluation of numerous school reforms requires an understanding of the value parents place on school quality. I use house prices to infer this value, where school quality is proxied by elementary school test scores. I do so by looking within school districts at houses located on attendance district boundaries; I am then comparing houses that differ along only one dimension: the elementary school the child attends. I thereby effectively remove the variation in neighborhood characteristics, property tax rates, and school spending. I find that parents are willing to pay 2.5% more for a 5% increase in test scores; this is approximately half the estimate one gets by running a typical hedonic housing price regression. This estimate is robust to a number of sensitivity checks.

Keywords: Consumer behavior; Education (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (57)

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Related works:
Journal Article: Do Better Schools Matter? Parental Valuation of Elementary Education (1999)
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