When do better schools raise housing prices? Evidence from Paris public and private schools

Gabrielle Fack and Julien Grenet

Post-Print from HAL

Abstract: In this paper, we investigate how housing prices react to the quality of education offered by neighboring public and private schools. The organization of secondary schooling in the city of Paris, which combines residence-based assignment to public schools with a well-developed and almost entirely publicly funded private school system, offers a valuable empirical context for analyzing how private schools affect the capitalization of public school performance in housing prices. Using comprehensive data on both schools and real estate transactions over the period 1997-2004, we develop a matching framework to carefully compare sales across school attendance boundaries. We find that a standard deviation increase in public school performance raises housing prices by 1.4 to 2.4%. Moreover, we show that the capitalization of public school performance in the price of real estate shrinks as the availability of private schools increases in the neighborhood. Our results confirm the predictions of general equilibrium models of school choice that private schools, by providing an advantageous outside option to parents, tend to mitigate the impact of public school performance on housing prices.

Keywords: School attendance zones; Private schools; Housing markets; Residential segregation (search for similar items in EconPapers)
Date: 2010-02
References: Add references at CitEc
Citations: View citations in EconPapers (148)

Published in Journal of Public Economics, 2010, 94 (1-2), pp.59-77. ⟨10.1016/j.jpubeco.2009.10.009⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: When do better schools raise housing prices? Evidence from Paris public and private schools (2010)
Working Paper: When do Better Schools Raise Housing Prices? Evidence from Paris Public and Private Schools (2010)
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:hal:journl:halshs-00754480

DOI: 10.1016/j.jpubeco.2009.10.009

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().