Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i6p1075-d102126.html
   My bibliography  Save this article

Linkage among School Performance, Housing Prices, and Residential Mobility

Author

Listed:
  • Yoojin Yi

    (Department of Agricultural Economics and Rural Development, Seoul National University, Seoul 08826, Korea)

  • Euijune Kim

    (Department of Agricultural Economics and Rural Development, Seoul National University, Seoul 08826, Korea)

  • Eunjin Choi

    (Department of Agricultural Economics and Rural Development, Seoul National University, Seoul 08826, Korea)

Abstract
Ensuring equal opportunity of quality basic education is critical for a sustainable society, but access to high-quality public education is limited by the place of residence and income level of the household, especially under rigid geographic school assignment. This paper identifies multilateral linkages among academic performance of elementary school, housing prices, and residential mobility in Seoul. A spatial simultaneous equation system is applied to address feedback simultaneity and spatial interactions between local housing market and residential mobility. The results show that school performance positively affects both housing prices and population in-migration, but the increase in housing prices discourages the residential move into affluent school districts. Based on the finding that discouraging effect of housing price premium on population in-migration outweighs the population inflow attracted by school performance, this paper suggests policies to reduce the inequality of educational achievements.

Suggested Citation

  • Yoojin Yi & Euijune Kim & Eunjin Choi, 2017. "Linkage among School Performance, Housing Prices, and Residential Mobility," Sustainability, MDPI, vol. 9(6), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:6:p:1075-:d:102126
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/6/1075/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/6/1075/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March.
    2. Stephen Machin & Kjell G. Salvanes, 2016. "Valuing School Quality via a School Choice Reform," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(1), pages 3-24, January.
    3. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    4. Zhang, Xiaobo & Kanbur, Ravi, 2005. "Spatial inequality in education and health care in China," China Economic Review, Elsevier, vol. 16(2), pages 189-204.
    5. Alves, Fatima & Elacqua, Gregory & Koslinki, Mariane & Martinez, Matias & Santos, Humberto & Urbina, Daniela, 2015. "Winners and losers of school choice: Evidence from Rio de Janeiro, Brazil and Santiago, Chile," International Journal of Educational Development, Elsevier, vol. 41(C), pages 25-34.
    6. Nechyba, Thomas, 2003. "School finance, spatial income segregation, and the nature of communities," Journal of Urban Economics, Elsevier, vol. 54(1), pages 61-88, July.
    7. 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.
    8. Victor Lavy & M. Daniele Paserman & Analia Schlosser, 2012. "Inside the Black Box of Ability Peer Effects: Evidence from Variation in the Proportion of Low Achievers in the Classroom," Economic Journal, Royal Economic Society, vol. 122(559), pages 208-237, March.
    9. Gavin Cameron & John Muellbauer, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-446, September.
    10. Mary A. Burke & Tim R. Sass, 2013. "Classroom Peer Effects and Student Achievement," Journal of Labor Economics, University of Chicago Press, vol. 31(1), pages 51-82.
    11. 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.
    12. John M. Clapp & Stephen L. Ross, 2004. "Schools and Housing Markets: An Examination of School Segregation and Performance in Connecticut," Economic Journal, Royal Economic Society, vol. 114(499), pages 425-440, November.
    13. Raj Chetty & John N. Friedman & Nathaniel Hilger & Emmanuel Saez & Diane Whitmore Schanzenbach & Danny Yagan, 2011. "How Does Your Kindergarten Classroom Affect Your Earnings? Evidence from Project Star," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(4), pages 1593-1660.
    14. Mehana, Majida & Reynolds, Arthur J., 2004. "School mobility and achievement: a meta-analysis," Children and Youth Services Review, Elsevier, vol. 26(1), pages 93-119, January.
    15. Gabriel, Stuart A. & Shack-Marquez, Janice & Wascher, William L., 1992. "Regional house-price dispersion and interregional migration," Journal of Housing Economics, Elsevier, vol. 2(3), pages 235-256, September.
    16. J. Paul Elhorst, 2014. "Linear Spatial Dependence Models for Cross-Section Data," SpringerBriefs in Regional Science, in: Spatial Econometrics, edition 127, chapter 0, pages 5-36, Springer.
    17. Dhar, Paramita & Ross, Stephen L, 2012. "School district quality and property values: Examining differences along school district boundaries," Journal of Urban Economics, Elsevier, vol. 71(1), pages 18-25.
    18. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    19. Eric A. Hanushek & Kuzey Yilmaz, 2010. "Household Location and Schools in Metropolitan Areas with Heterogeneous Suburbs; Tiebout, Alonso, and Government Policy," NBER Working Papers 15915, National Bureau of Economic Research, Inc.
    20. Daniel Aaronson & Lisa Barrow & William Sander, 2007. "Teachers and Student Achievement in the Chicago Public High Schools," Journal of Labor Economics, University of Chicago Press, vol. 25(1), pages 95-135.
    21. repec:bla:scotjp:v:45:y:1998:i:4:p:420-46 is not listed on IDEAS
    22. Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
    23. Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G., 2004. "Disruption versus Tiebout improvement: the costs and benefits of switching schools," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1721-1746, August.
    24. 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.
    25. James P. LeSage & R. Kelley Pace, 2014. "The Biggest Myth in Spatial Econometrics," Econometrics, MDPI, vol. 2(4), pages 1-33, December.
    26. Barrow, Lisa, 2002. "School choice through relocation: evidence from the Washington, D.C. area," Journal of Public Economics, Elsevier, vol. 86(2), pages 155-189, November.
    27. Shana Pribesh & Douglas Downey, 1999. "Why are residential and school moves associated with poor school performance?," Demography, Springer;Population Association of America (PAA), vol. 36(4), pages 521-534, November.
    28. Holmlund, Helena & Sund, Krister, 2008. "Is the gender gap in school performance affected by the sex of the teacher," Labour Economics, Elsevier, vol. 15(1), pages 37-53, February.
    29. Brasington, David M. & Haurin, Donald R., 2009. "Parents, peers, or school inputs: Which components of school outcomes are capitalized into house value?," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 523-529, September.
    30. Feng, Hao & Lu, Ming, 2013. "School quality and housing prices: Empirical evidence from a natural experiment in Shanghai, China," Journal of Housing Economics, Elsevier, vol. 22(4), pages 291-307.
    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. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration versus Regional Commuting: The Identification of Housing and Employment Flows," Scottish Journal of Political Economy, Scottish Economic Society, vol. 39(3), pages 272-287, August.
    33. Pauline Musset, 2012. "School Choice and Equity: Current Policies in OECD Countries and a Literature Review," OECD Education Working Papers 66, OECD Publishing.
    34. Luc Anselin & Harry H. Kelejian, 1997. "Testing for Spatial Error Autocorrelation in the Presence of Endogenous Regressors," International Regional Science Review, , vol. 20(1-2), pages 153-182, April.
    35. Jeanty, P. Wilner & Partridge, Mark & Irwin, Elena, 2010. "Estimation of a spatial simultaneous equation model of population migration and housing price dynamics," Regional Science and Urban Economics, Elsevier, vol. 40(5), pages 343-352, September.
    36. Dan D. Goldhaber & Dominic J. Brewer, 1997. "Why Don't Schools and Teachers Seem to Matter? Assessing the Impact of Unobservables on Educational Productivity," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 505-523.
    37. Hanushek, Eric & Yilmaz, Kuzey, 2007. "The complementarity of Tiebout and Alonso," Journal of Housing Economics, Elsevier, vol. 16(2), pages 243-261, June.
    38. Ronald G. Ehrenberg & Daniel D. Goldhaber & Dominic J. Brewer, 1995. "Do Teachers' Race, Gender, and Ethnicity Matter? Evidence from the National Educational Longitudinal Study of 1988," ILR Review, Cornell University, ILR School, vol. 48(3), pages 547-561, April.
    39. Ivo Šlaus & Garry Jacobs, 2011. "Human Capital and Sustainability," Sustainability, MDPI, vol. 3(1), pages 1-58, January.
    40. Richard Jackman & S Savouri, 1992. "Regional Migration versus Regional Commuting: The Identification of Housing and Employment Flows," CEP Discussion Papers dp0057, Centre for Economic Performance, LSE.
    41. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-1450, November.
    42. Nan Astone & Sara McLanahan, 1994. "Family structure, residential mobility, and school dropout: A research note," Demography, Springer;Population Association of America (PAA), vol. 31(4), pages 575-584, November.
    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. Changhyo Yi & Kijung Kim, 2018. "A Machine Learning Approach to the Residential Relocation Distance of Households in the Seoul Metropolitan Region," Sustainability, MDPI, vol. 10(9), pages 1-19, August.
    2. Chaohai Shen & Tong Sheng & Xingheng Shi & Bingquan Fang & Xiaoqian Lu & Xiaolan Zhou, 2022. "The Relationship between Housing Price, Teacher Salary Improvement, and Sustainable Regional Economic Development," Land, MDPI, vol. 11(12), pages 1-21, December.
    3. Eun Jung Kim & Hyunjung Kim, 2020. "Neighborhood Walkability and Housing Prices: A Correlation Study," Sustainability, MDPI, vol. 12(2), pages 1-18, January.

    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. 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.
    2. Hu, Lirong & He, Shenjing & Luo, Yun & Su, Shiliang & Xin, Jing & Weng, Min, 2020. "A social-media-based approach to assessing the effectiveness of equitable housing policy in mitigating education accessibility induced social inequalities in Shanghai, China," Land Use Policy, Elsevier, vol. 94(C).
    3. Peng, Ying & Tian, Chuanhao & Wen, Haizhen, 2021. "How does school district adjustment affect housing prices: An empirical investigation from Hangzhou, China," China Economic Review, Elsevier, vol. 69(C).
    4. Machin, Stephen, 2011. "Houses and schools: Valuation of school quality through the housing market," Labour Economics, Elsevier, vol. 18(6), pages 723-729.
    5. Ding, Kangzhe & Itoh, Ryo, 2023. "JUE Insight: The impact of the school admission restriction policy on the housing market in Shanghai," Journal of Urban Economics, Elsevier, vol. 136(C).
    6. 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.
    7. Tong, Jian & Zhang, Cong & Yue, Tong & Bai, Yanfeng & Shao, Lei, 2024. "The distributional effects of introducing a lottery system in school assignment rule: Evidence from an experiment in Beijing, China," International Journal of Educational Development, Elsevier, vol. 107(C).
    8. Pengyu Zhu & Yi Zhang & Juan Wang, 2023. "Canceling the admission priority of private schools enlarges housing price gap in public school districts: Evidence from Shanghai's new admission policy," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 51(1), pages 49-67, January.
    9. 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.
    10. Huang, Bin & He, Xiaoyan & Xu, Lei & Zhu, Yu, 2020. "Elite school designation and housing prices-quasi-experimental evidence from Beijing, China✰," Journal of Housing Economics, Elsevier, vol. 50(C).
    11. Huang, Bin & He, Xiaoyan & Xu, Lei & Zhu, Yu, 2020. "Elite School Designation and Housing Prices: Quasi-Experimental Evidence from Beijing, China," IZA Discussion Papers 12897, Institute of Labor Economics (IZA).
    12. Chen, Jing & Li, Rui, 2023. "Pay for elite private schools or pay for higher housing prices? Evidence from an exogenous policy shock," Journal of Housing Economics, Elsevier, vol. 60(C).
    13. Gibbons, Stephen & Machin, Stephen & Silva, Olmo, 2013. "Valuing school quality using boundary discontinuities," Journal of Urban Economics, Elsevier, vol. 75(C), pages 15-28.
    14. repec:mab:wpaper:23 is not listed on IDEAS
    15. Yadavalli, Anita P. & Florax, Raymond J.G.M., 2013. "The Effect of School Quality on House Prices: A Meta-Regression Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 151291, Agricultural and Applied Economics Association.
    16. 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.
    17. 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.
    18. Xiao, Yue & Wen, Haizhen & Hui, Eddie C.M. & Zhou, Ganghua, 2022. "Dynamic capitalization effects of educational facilities during different market stages: An empirical study in Hangzhou, China," Land Use Policy, Elsevier, vol. 122(C).
    19. Luigi Benfratello & Giuseppe Sorrenti & Gilberto Turati, 2020. "Tracking in the tracks in the Italian public schooling: Inequality patterns in an urban context," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2020(2), pages 39-70.
    20. 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.
    21. Sylvia Y He, 2017. "A hierarchical estimation of school quality capitalisation in house prices in Orange County, California," Urban Studies, Urban Studies Journal Limited, vol. 54(14), pages 3337-3359, November.

    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:gam:jsusta:v:9:y:2017:i:6:p:1075-:d:102126. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.