Educational equity is the foundation of social equity, and education equalization is one of the serious issues to be solved by the government. This work considers one education equalization reform conducted by Suzhou Industrial Park of China, namely, the comprehensive "five to nine" (CFTN) housing purchase admission qualification adjustment policy, as an example and uses the resold housing transaction data to identify the effect of the equalization policy by the difference-in-differences (DID) method. Based on this natural experiment, the quantitative assessment results show that (1) the CFTN policy has a significantly positive effect on housing prices in nine-year consistent (NYC) school districts that belong to high-quality school districts; (2) the CFTN policy has no significant effect on housing prices in non-NYC consistent school districts that belong to ordinary school districts. These results uncover that the one-size-fits-all CFTN policy can only obtain significant housing price equilibrium effects in school districts above a certain level of education quality. For regions with backward education levels, the policy is ineffective. For these regions, continuously increasing high-quality educational resources and increasing educational service levels are essential solutions to reduce educational inequality.
Xie, S.; Reman, M. A. u.; Mao, K. Effects of Education Equalization Measures on Housing Prices: Evidence from a Natural Experiment in Suzhou, China. Review of Economic Assessment, 2022, 1, 2. https://doi.org/10.58567/rea01010002
Xie S, Reman M A u, Mao K. Effects of Education Equalization Measures on Housing Prices: Evidence from a Natural Experiment in Suzhou, China. Review of Economic Assessment; 2022, 1(1):2. https://doi.org/10.58567/rea01010002
Xie, Shang; Reman, Muhammad A. u.; Mao, Kang 2022. "Effects of Education Equalization Measures on Housing Prices: Evidence from a Natural Experiment in Suzhou, China" Review of Economic Assessment 1, no.1: 2. https://doi.org/10.58567/rea01010002
Xie, S., Reman, M. A. u., & Mao, K. (2022). Effects of Education Equalization Measures on Housing Prices: Evidence from a Natural Experiment in Suzhou, China. Review of Economic Assessment, 1(1), 2. https://doi.org/10.58567/rea01010002
Article Access Statistics
Agarwal, S., Rengarajan, S., Sing, T. F., et al (2016). School allocation rules and housing prices: A quasi-experiment with school relocation events in Singapore. Regional Science and Urban Economics, 58, 42-56.
Black, S. E (1999). Do Better Schools Matter? Parental Valuation of Elementary Education. The Quarterly Journal of Economics, 114(2), 577-599.
Brasington, D. & Haurin, D. R. (2006). Educational outcomes and house values: A test of the value added approach. Journal of Regional Science, 2006, 46(2): 245-268.
Debrezion, G., Pels, E., & Rietveld, P. (2007). The impact of railway stations on residential and commercial property value: a meta-analysis. The journal of real estate finance and economics, 35(2), 161-180.
Debruyne, K., & Van, H. J. (2013). Explaining the spatial variation in housing prices: an economic geography approach. Applied Economics, 45(13), 1673-1689.
Dhar, P., & Ross, S. L. (2012). School district quality and property values: Examining differences along school district boundaries. Journal of Urban Economics, 71(1), 18-25.
Dubin, R. A.(1998). Spatial autocorrelation: a primer. Journal of housing economics, 7(4), 304-327.
Espey, M., & Owusu-Edusei, K. (2001). Neighborhood parks and residential property values in Greenville, South Carolina. Journal of Agricultural and Applied Economics, 33(3), 487-492.
Feng, H., & Lu, M. (2013). School quality and housing prices: Empirical evidence from a natural experiment in Shanghai, China. Journal of Housing Economics, 22(4), 291-307.
Geng, B., Bao, H., & Liang, Y. (2015). A study of the effect of a high-speed rail station on spatial variations in housing price based on the hedonic model. Habitat International, 49, 333-339.
Guo, X., Zheng, S., Geltner, D., et al (2014). A new approach for constructing home price indices: the pseudo repeat sales model and its application in China. Journal of Housing Economics. 25, 20–38.
Ha, w.，& Yu, R. Z. (2017). How much is an improved school worth? Evidence from the comprehensive reform in compulsory education in Beijing. Peking University Education Review, 15(03), 137-153+191.
Huang, D. J., Leung, C. K., & Qu, B. (2015). Do bank loans and local amenities explain Chinese urban house prices?. China Economic Review, 34, 19-38.
Li, H., Wei, Y. D., & Yu, Z., et al (2016). Amenity, accessibility and housing values in metropolitan USA: A study of Salt Lake County, Utah. Cities, 59, 113-125.
Li, Y. G., Gao, B., & Wang, J. (2012). Promotion Stimulation, Land Finance and Equalization of Public Education Service. Journal of Shanxi Finance and Economics University, 34(12), 1-9.
Liu, S. T., & Zhang, X. K. (2020). Encouraging both Housing Purchase and Renting, Housing Price Changes and Housing Market Development.Contemporary Finance & Economics, 3, 3-15.
Nguyen-Hoang, P., & Yinger, J. (2011). The Capitalization of School Quality into House Values: A Review. Journal of Housing Economics, 20(1), 30-48.
Osland, L. (2010). An application of spatial econometrics in relation to hedonic house price modeling. Journal of Real Estate Research, 32(3), 289-320.
Ries, J., & Somerville, T. (2010). School quality and residential property values: evidence from Vancouver rezoning. The Review of Economics and Statistics, 92(4), 928-944.
Rosen, H. S. & Fullerton, D. J. (1977). A Note on Local Tax Rates, Public Benefit Levels, and Property Values. Journal of Political Economy, 85(2), 433-440.
Rosen, S. (1974). Hedonic prices and implicit markets: product differentiation in pure competition. Journal of political economy, 82(1), 34-55.
Rosenthal, L. (2003). The value of secondary school quality. Oxford Bulletin of Economics and Statistics, 65(3), 329-355.
Shao, L., Ｒen, Q., & Hou, Y. L. (2020). Capitalization of Education Equalization Measures: Evidence from Beijing. The Journal of World Economy, 43(11), 78-101.
Tiebout, C. M. (1956). A Pure Theory of Local Expenditures. Journal of Political Economy, 64(5), 416-424.
Wang, Y. (2006). Equalization of Basic Education Services: An Analysis Based on the Perspective of Fiscal Equity. Public Finance Research, 12, 24-26.
Wen, H., & Tao, Y. (2015). Polycentric urban structure and housing price in the transitional China: Evidence from Hangzhou. Habitat International, 46, 138-146.
Wen, H., Bu, X., & Qin, Z. (2014). Spatial effect of lake landscape on housing price: A case study of the West Lake in Hangzhou, China. Habitat International, 44, 31-40.
Wen, H., Xiao, Y., & Zhang, L. (2017). School district, education quality, and housing price: Evidence from a natural experiment in Hangzhou, China. Cities, 66, 72-80.
Wen, H., Zhang, Y., & Zhang, L. (2014). Do educational facilities affect housing price? An empirical study in Hangzhou, China. Habitat International, 42, 155-163.
Wen, H., Zhang, Y., & Zhang, L. (2015). Assessing amenity effects of urban landscapes on housing price in Hangzhou, China. Urban Forestry & Urban Greening, 14(4), 1017-1026.
Wen, J. X., & Jiang, H. (2013). An Empirical Study on the Equalization Level of Basic Educational Services in my country——Based on the Analysis of Bivariate Theil Index. Public Finance Research, 6, 68-72.
Xu, Y., Zhang, Q., & Zheng, S. (2015). The rising demand for subway after private driving restriction: Evidence from Beijing's housing market. Regional Science and Urban Economics, 54, 28-37.
Yuan, F., Wei, Y. D., & Wu, J. (2020). Amenity effects of urban facilities on housing prices in China: Accessibility, scarcity, and urban spaces. Cities, 96, 102433.
Yuan, F., Wu, J., Wei, Y. D., et al (2018). Policy change, amenity, and spatiotemporal dynamics of housing prices in Nanjing, China. Land Use Policy, 75, 225-236.