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Residential Location and Education in the United States

Author

Listed:
  • Eric A. Hanushek

    (Stanford, UT Dallas, and NBER)

  • Kuzey Yilmaz

    (Cleveland State University)

Abstract

The educational story in the United States is thoroughly intertwined with residential location. Poverty, race, and schooling are very highly correlated with location, and the institutional structure of public education decision making in the United States leads to a close linkage of location, housing, and education. As a result, residential decisions have added implications for households. Moreover, the reliance on the local tax for a large portion of school funding implies that the governmental grant system has an important effect on both locational decisions and on educational outcomes. This chapter provides a theoretical and empirical discussion of the interaction of location and schooling. In contrast to this discussion that emphasizes the behavior of households in choosing a location, a range of policy decisions have explicitly been based on location but for the most part assuming that households will not react to the policies. These policies aim to alter the attractiveness of a local school district but generally ignore any general equilibrium effects from household behavior. Here we also review some of the more important policies affecting the location-schooling equilibrium.

Suggested Citation

  • Eric A. Hanushek & Kuzey Yilmaz, 2020. "Residential Location and Education in the United States," GRU Working Paper Series GRU_2020_017, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    • Handle: RePEc:cth:wpaper:gru_2020_017
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    File URL: https://www.cb.cityu.edu.hk/ef/doc/GRU/WPS/GRU%232020-017%20Hanushek.pdf
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    Cited by:

    1. Tang, Edward Chi Ho & Leung, Charles Ka Yui, 2024. "Icing on the cake: Can the Top-Floor Units serve as a status good and an investment simultaneously?," MPRA Paper 121937, University Library of Munich, Germany.
    2. Gong, Yifan & Leung, Charles Ka Yui, 2024. "Does space matter? The case of the housing expenditure cap," Regional Science and Urban Economics, Elsevier, vol. 104(C).

    More about this item

    Keywords

    Residential Segregation; Educational Finance; Government Policy;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I2 - Health, Education, and Welfare - - Education
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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