Open Access Journal Article

Effects of Education Equalization Measures on Housing Prices: Evidence from a Natural Experiment in Suzhou, China

by Shang Xie a,* Muhammad Ateeq ur Reman b  and  Kang Mao c
School of Economics, Peking University, Beijing, China
Research Institute of Economics and Management, Southwestern University of Finance and Economics, Chengdu, China
College of Urban and Environmental Sciences, Peking University, Beijing,China
Author to whom correspondence should be addressed.
REA  2022, 2; 1(1), 2;
Received: 18 November 2022 / Accepted: 24 December 2022 / Published Online: 30 December 2022


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.

Copyright: © 2022 by Xie, Reman and Mao. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
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.
AMA Style
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.
Chicago/Turabian Style
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.
APA style
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.

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