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School choice and neighborhood sorting: Equilibrium consequences of geographic school admissions

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  • Ellen Greaves
  • Hélène Turon

Abstract

Geographic school admissions criteria bind residential and school choices for some parents, and could create externalities in equilibrium for non-parents through displacement or higher rent. Through a dynamic structural model, we show that the policy decision of geographic versus non-geographic school admissions criteria has important implications for equilibrium outcomes in school and housing markets. Geographic admissions criteria segregate schools, but integrate neighborhoods according to income. Incorporating non-parents into the model challenges the existing understanding of how public schools affect the housing market: non-parent households dampen the equilibrium price premium around popular schools; non-parent households are never better off under geographic admissions.

Suggested Citation

  • Ellen Greaves & Hélène Turon, 2023. "School choice and neighborhood sorting: Equilibrium consequences of geographic school admissions," Bristol Economics Discussion Papers 24/779, School of Economics, University of Bristol, UK.
    • Handle: RePEc:bri:uobdis:24/779
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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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