How Much is An Improved School Worth? Evidence from the Comprehensive Reform in Compulsory Education in Beijing
Author(s): HA Wei, YU Renzhe
Pages: 137-153+191
Year: 2017 Issue: 3
Journal: Peking University Education Review
Keyword: 学区房; 公共品资本化; 义务教育综合改革; 事件研究模型; 北京;
Abstract: In recent years, there has been a mushrooming of studies that estimate the capitalization effect of school quality into home values in China. However,these studies have not tackled the endogeneity issue well. Our study takes advantage of a reasonably exogenous comprehensive reform in compulsory education in Beijing and a regression discontinuity approach to estimate the housing price premium of school quality in Beijing. Our findings show that the first three waves of reform-induced improvement in school quality are on average associated with a 1. 2% increase in housing prices within the attendance zones of the improved schools. It takes more than one year before this effect to become noticeable. The effects were much larger and appear much faster for the first wave of the improved schools and for small apartments. These results imply that the benefits of the reform may be captured by the relative well-off group in the society which sheds lights on the policy efforts to equalize school resources in China’s compulsory education.
Pages: 137-153+191
Year: 2017 Issue: 3
Journal: Peking University Education Review
Keyword: 学区房; 公共品资本化; 义务教育综合改革; 事件研究模型; 北京;
Abstract: In recent years, there has been a mushrooming of studies that estimate the capitalization effect of school quality into home values in China. However,these studies have not tackled the endogeneity issue well. Our study takes advantage of a reasonably exogenous comprehensive reform in compulsory education in Beijing and a regression discontinuity approach to estimate the housing price premium of school quality in Beijing. Our findings show that the first three waves of reform-induced improvement in school quality are on average associated with a 1. 2% increase in housing prices within the attendance zones of the improved schools. It takes more than one year before this effect to become noticeable. The effects were much larger and appear much faster for the first wave of the improved schools and for small apartments. These results imply that the benefits of the reform may be captured by the relative well-off group in the society which sheds lights on the policy efforts to equalize school resources in China’s compulsory education.
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