In a recent study, Black (1999) shows that parents buy better schooling for their children by paying more for housing. She finds that parents who pay 2.5 percent more for housing receive a 5 percent increase in elementary school test scores. In this chapter, I test a related hypothesis—whether an increase in the percentage of children who attend private grade schools and high schools in Illinois increases housing values. As indicated in the previous chapter, Catholic schools account for more than fifty percent of the enrollment in private grade schools and high schools in Illinois. For this reason, I assume private school effects on housing values are a proxy for Catholic school effect. I show that a one percentage point increase in the percentage who attend private schools increases housing values by about 1 percent.
KeywordsPublic School School District Housing Price Private School Percentage Point Increase
Unable to display preview. Download preview PDF.
- Bound, J., Jaeger, D., Baker, R., 1995. “Problems with instrumental variable estimation when the correlation between instruments and the endogenous variable is weak.” Journal of the American Statistical Association 90, 443–450.Google Scholar
- Churches and Church Membership in the United States. 1992. Glenmary Research Center, Atlanta.Google Scholar
- Figlio, D.N. Stone, J.A., forthcoming. “School choice and student performance: Are private schools really better?” Research in Labor Economics. Google Scholar
- Hanushek, E.A. 1986. “The economics of schooling.” Journal of Economic Literature 65, 245–269.Google Scholar
- Hanushek, E.A. 1997. “Assessing the effects of school resources on student performance: An update.” Education Evaluation and Policy Analysis 19, 141–164.Google Scholar
- Illinois State Board of Education. 1996. 1996 School Report Card Data. Illinois State Board of Education, Springfield.Google Scholar
- Ludwig, J. 1997. Educational achievement in public, private, and Catholic schools. Georgetown University working paper, Washington, D.C.Google Scholar
- Marciniak, E. 1998. Chicago’s private elementary and secondary schools. Institute of Urban Life, Loyola University, Chicago.Google Scholar
- Sander, W. 1999. “Private schools and public school achievement.” Journal of Human Resources 34.Google Scholar
- United States Department of Education. 1995. School District Data Book. National Center for Education Statistics, Washington, D.C.Google Scholar