Nothing Special   »   [go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v62y2022i1p125-149.html
   My bibliography  Save this article

What does the disclosure of school quality information bring? The effect through the housing market

Author

Listed:
  • Yuta Kuroda
Abstract
This study investigates how disclosure of school quality information influences the behavior of students and parents. Using the event in which school‐level test scores were first disclosed in October 2014 in Matsue City, Japan, I estimate the change in the effect of test scores on housing rent and population in a school district between pre‐ and post‐disclosure. Following the disclosure of scores, the school catchment areas with higher scores witnessed a significant increase in the rents of apartments for families and the population of school‐age children. These results provide novel evidence that disclosure of school quality information significantly impacts people's school and residential choice behavior.

Suggested Citation

  • Yuta Kuroda, 2022. "What does the disclosure of school quality information bring? The effect through the housing market," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 125-149, January.
  • Handle: RePEc:bla:jregsc:v:62:y:2022:i:1:p:125-149
    DOI: 10.1111/jors.12557
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jors.12557
    Download Restriction: no

    File URL: https://libkey.io/10.1111/jors.12557?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Schwartz, Amy Ellen & Voicu, Ioan & Horn, Keren Mertens, 2014. "Do choice schools break the link between public schools and property values? Evidence from house prices in New York City," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 1-10.
    2. Gibbons, Stephen & Neumayer, Eric & Perkins, Richard, 2015. "Student satisfaction, league tables and university applications: Evidence from Britain," Economics of Education Review, Elsevier, vol. 48(C), pages 148-164.
    3. Stephen Machin, 2011. "Houses and Schools: Valuation of School Quality through then Housing Market - EALE 2010 Presidential Address," CEP Occasional Papers 29, Centre for Economic Performance, LSE.
    4. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation of Elementary Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(2), pages 577-599.
    5. Alexander W. Marré & Anil Rupasingha, 2020. "School quality and rural in‐migration: Can better rural schools attract new residents?," Journal of Regional Science, Wiley Blackwell, vol. 60(1), pages 156-173, January.
    6. Patrick Bayer & Fernando Ferreira & Robert McMillan, 2007. "A Unified Framework for Measuring Preferences for Schools and Neighborhoods," Journal of Political Economy, University of Chicago Press, vol. 115(4), pages 588-638, August.
    7. Fack, Gabrielle & Grenet, Julien, 2010. "When do better schools raise housing prices? Evidence from Paris public and private schools," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 59-77, February.
    8. Pierre Koning & Karen Wiel, 2012. "School Responsiveness to Quality Rankings: An Empirical Analysis of Secondary Education in the Netherlands," De Economist, Springer, vol. 160(4), pages 339-355, December.
    9. Haisken-DeNew, John & Hasan, Syed & Jha, Nikhil & Sinning, Mathias, 2018. "Unawareness and selective disclosure: The effect of school quality information on property prices," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 449-464.
    10. Kuroda, Yuta, 2018. "The effect of school quality on housing rents: Evidence from Matsue city in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 50(C), pages 16-25.
    11. Burgess, Simon & Wilson, Deborah & Worth, Jack, 2013. "A natural experiment in school accountability: The impact of school performance information on pupil progress," Journal of Public Economics, Elsevier, vol. 106(C), pages 57-67.
    12. repec:bla:ecinqu:v:51:y:2013:i:3:p:1809-1828 is not listed on IDEAS
    13. Machin, Stephen, 2011. "Houses and schools: Valuation of school quality through the housing market," Labour Economics, Elsevier, vol. 18(6), pages 723-729.
    14. Pope, Devin G., 2009. "Reacting to rankings: Evidence from "America's Best Hospitals"," Journal of Health Economics, Elsevier, vol. 28(6), pages 1154-1165, December.
    15. Justine S. Hastings & Jeffrey M. Weinstein, 2008. "Information, School Choice, and Academic Achievement: Evidence from Two Experiments," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(4), pages 1373-1414.
    16. Imberman, Scott A. & Lovenheim, Michael F., 2016. "Does the market value value-added? Evidence from housing prices after a public release of school and teacher value-added," Journal of Urban Economics, Elsevier, vol. 91(C), pages 104-121.
    17. repec:mab:wpaper:23 is not listed on IDEAS
    18. George Loewenstein & Cass R. Sunstein & Russell Golman, 2014. "Disclosure: Psychology Changes Everything," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 391-419, August.
    19. Hanley Chiang, "undated". "How Accountability Pressure on Failing Schools Affects Student Achievement," Mathematica Policy Research Reports c58a3b537e324447b94a2bd41, Mathematica Policy Research.
    20. Jacob, Brian A., 2005. "Accountability, incentives and behavior: the impact of high-stakes testing in the Chicago Public Schools," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 761-796, June.
    21. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
    22. Atsushi Yoshida & Katsuo Kogure & Koichi Ushijima, 2009. "School Choice And Student Sorting: Evidence From Adachi Ward In Japan," The Japanese Economic Review, Japanese Economic Association, vol. 60(4), pages 446-472, December.
    23. Nunes, Luis C. & Reis, Ana Balcão & Seabra, Carmo, 2015. "The publication of school rankings: A step toward increased accountability?," Economics of Education Review, Elsevier, vol. 49(C), pages 15-23.
    24. Stephen B. Billings & Eric J. Brunner & Stephen L. Ross, 2018. "Gentrification and Failing Schools: The Unintended Consequences of School Choice under NCLB," The Review of Economics and Statistics, MIT Press, vol. 100(1), pages 65-77, March.
    25. Daphna Bassok & Thomas S. Dee & Scott Latham, 2019. "The Effects of Accountability Incentives in Early Childhood Education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(4), pages 838-866, September.
    26. David N. Figlio & Maurice E. Lucas, 2004. "What's in a Grade? School Report Cards and the Housing Market," American Economic Review, American Economic Association, vol. 94(3), pages 591-604, June.
    27. Leonardo Bonilla‐Mejía & Esteban Lopez & Daniel McMillen, 2020. "House prices and school choice: Evidence from Chicago's magnet schools’ proximity lottery," Journal of Regional Science, Wiley Blackwell, vol. 60(1), pages 33-55, January.
    28. repec:mpr:mprres:6364 is not listed on IDEAS
    29. Pierre Koning & Karen van der Wiel, 2013. "Ranking The Schools: How School-Quality Information Affects School Choice In The Netherlands," Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 466-493, April.
    30. Eric A. Hanushek & Margaret E. Raymond, 2004. "The Effect of School Accountability Systems on the Level and Distribution of Student Achievement," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 406-415, 04/05.
    31. Nguyen-Hoang, Phuong & Yinger, John, 2011. "The capitalization of school quality into house values: A review," Journal of Housing Economics, Elsevier, vol. 20(1), pages 30-48, March.
    32. Jon H. Fiva & Lars J. Kirkebøen, 2011. "Information Shocks and the Dynamics of the Housing Market," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(3), pages 525-552, September.
    33. Andrew Bibler & Stephen B. Billings, 2020. "Win or Lose: Residential Sorting After a School Choice Lottery," The Review of Economics and Statistics, MIT Press, vol. 102(3), pages 457-472, July.
    34. John Ries & Tsur Somerville, 2010. "School Quality and Residential Property Values: Evidence from Vancouver Rezoning," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 928-944, November.
    35. Chiang, Hanley, 2009. "How accountability pressure on failing schools affects student achievement," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1045-1057, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Atsushi Yamagishi & Yasuhiro Sato, 2022. "Measuring Discrimination in Spatial Equilibrium: 100 Years of Japan's Invisible Race," CIRJE F-Series CIRJE-F-1188, CIRJE, Faculty of Economics, University of Tokyo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rajapaksa, Darshana & Gono, Marcel & Wilson, Clevo & Managi, Shunsuke & Lee, Boon & Hoang, Viet-Ngu, 2020. "The demand for education: The impacts of good schools on property values in Brisbane, Australia," Land Use Policy, Elsevier, vol. 97(C).
    2. Agarwal, Sumit & Rengarajan, Satyanarain & Sing, Tien Foo & Yang, Yang, 2016. "School allocation rules and housing prices: A quasi-experiment with school relocation events in Singapore," Regional Science and Urban Economics, Elsevier, vol. 58(C), pages 42-56.
    3. Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013. "Valuing school quality using boundary discontinuities," Journal of Urban Economics, Elsevier, vol. 75(C), pages 15-28.
    4. Chung, Il Hwan, 2015. "School choice, housing prices, and residential sorting: Empirical evidence from inter-and intra-district choice," Regional Science and Urban Economics, Elsevier, vol. 52(C), pages 39-49.
    5. Melser, Daniel & Moallemi, Morteza & Kim, Jun Sung, 2021. "Preferences for single-sex schools: Evidence from the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 710-726.
    6. Crocker H. Liu & Patrick S. Smith, 2023. "School quality as a catalyst for bidding wars and new housing development," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(4), pages 785-818, July.
    7. Hussain, Iftikhar, 2023. "Housing market and school choice response to school quality information shocks✰," Journal of Urban Economics, Elsevier, vol. 138(C).
    8. Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013. "Valuing school quality using boundary discontinuity," LSE Research Online Documents on Economics 45246, London School of Economics and Political Science, LSE Library.
    9. Chan, Jimmy & Fang, Xian & Wang, Zhi & Zai, Xianhua & Zhang, Qinghua, 2020. "Valuing primary schools in urban China," Journal of Urban Economics, Elsevier, vol. 115(C).
    10. W. Bentley MacLeod & Miguel Urquiola, 2018. "Is Education Consumption or Investment? Implications for the Effect of School Competition," NBER Working Papers 25117, National Bureau of Economic Research, Inc.
    11. Camargo, Braz & Camelo, Rafael & Firpo, Sergio & Ponczek, Vladimir, 2014. "Information, Market Incentives, and Student Performance," IZA Discussion Papers 7941, Institute of Labor Economics (IZA).
    12. Thompson, Paul N., 2016. "School district and housing price responses to fiscal stress labels: Evidence from Ohio," Journal of Urban Economics, Elsevier, vol. 94(C), pages 54-72.
    13. Imberman, Scott A. & Lovenheim, Michael F., 2016. "Does the market value value-added? Evidence from housing prices after a public release of school and teacher value-added," Journal of Urban Economics, Elsevier, vol. 91(C), pages 104-121.
    14. Xuejuan Su & Huayi Yu, 2022. "Valuing elementary schools: evidence from public school acquisitions in Beijing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 124(4), pages 1117-1141, October.
    15. Nunes, Luis C. & Reis, Ana Balcão & Seabra, Carmo, 2015. "The publication of school rankings: A step toward increased accountability?," Economics of Education Review, Elsevier, vol. 49(C), pages 15-23.
    16. Lovenheim, Michael F. & Walsh, Patrick, 2018. "Does choice increase information? Evidence from online school search behavior," Economics of Education Review, Elsevier, vol. 62(C), pages 91-103.
    17. Pierre Koning & Karen Wiel, 2012. "School Responsiveness to Quality Rankings: An Empirical Analysis of Secondary Education in the Netherlands," De Economist, Springer, vol. 160(4), pages 339-355, December.
    18. Xiao Tian & Jin Liu & Yong Liu, 2022. "How Does the Quality of Junior High Schools Affect Housing Prices? A Quasi-Natural Experiment Based on the Admission Reform in Chengdu, China," Land, MDPI, vol. 11(9), pages 1-18, September.
    19. Michael Hurwitz & Jonathan Smith, 2018. "Student Responsiveness To Earnings Data In The College Scorecard," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 1220-1243, April.
    20. Mathilde Poulhes, 2017. "From Latin Quarter to Montmartre Investigating Parisian Real-Estate Prices," Working Papers 2017-13, Center for Research in Economics and Statistics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:62:y:2022:i:1:p:125-149. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.