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Did the Abolition of School District Zoning Affect House Prices? Evidence from the Housing Market in Osaka City

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  • Satoshi Myojo

Abstract

This study examined the impact of the academic performance of accessible public schools on house prices within school districts utilizing rental housing data in Osaka City. A hedonic analysis based on a regression discontinuity design was conducted by restricting the analysis to houses within a certain distance from the boundaries of junior high school and high school districts. The result demonstrated that the education premium capitalized in the rent is considerably smaller than that found in a previous study that conducted a similar analysis for a rural city in Japan. Furthermore, we also measured changes in the education premium over time, including data before and after the abolition of the school district system. The result indicates that the premium did not decrease but rather increased after the abolition of school districts. This could be due to the announcement effect of the disclosure of the test scores of all public junior high schools around the same time as the abolition of the school district system. In addition, it may also be due to the dysfunctionality of the newly implemented school choice system, in which students are unable to choose a school under the capacity constraint of the school.

Suggested Citation

  • Satoshi Myojo, 2024. "Did the Abolition of School District Zoning Affect House Prices? Evidence from the Housing Market in Osaka City," Working Papers e207, Tokyo Center for Economic Research.
    • Handle: RePEc:tcr:wpaper:e207
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