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School Performance, Score Inflation, and Neighborhood Development

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  • Erich Battistin
  • Lorenzo Neri

Abstract

We show that score inflation yields residential sorting around what households expect to be better schools, with long-term consequences for the economic geography of neighborhoods. We consider primary school exams in England, where grading standards have triggered an inflation of indicators in the national performance tables since the mid-1990s. Local neighborhoods were gentrified because of school improvements artificially signaled by score inflation. Competition between schools increased, yielding a real improvement in their quality. Effects of score inflation on house prices, deprivation, and local economic activities are identifiable through to the present day.

Suggested Citation

  • Erich Battistin & Lorenzo Neri, 2024. "School Performance, Score Inflation, and Neighborhood Development," Journal of Labor Economics, University of Chicago Press, vol. 42(3), pages 753-792.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/725001
    DOI: 10.1086/725001
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