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AbstractWe examine residential relocation and opting out of the public school system in response to school choice lottery outcomes. We show that rising kindergarten and sixth graders who lose a school choice lottery are 6 percentage points more likely to exit the district or change neighborhood schools (20-30% increase) and make up 0.14-0.35 standard deviations in average school test scores between lottery assignment and attendance the following year. Using hedonic-based estimates of land prices, we estimate that lottery losers pay a 9-11% housing price premium for access to a school with a one standard deviation higher mean test score.
SourceReview of Economics and Statistics
CitationBibler, A., & Billings, S. B. (2020). Win or lose: Residential sorting after a school choice lottery. Review of Economics and Statistics, 102(3), 457-472.
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