The Effect of Housing Wealth on College Choice: Evidence from the Housing Boom

• Autores: Michael F. Lovenheim, C. Lockwood. Reynolds
• Localización: Journal of human resources, ISSN 0022-166X, Vol. 48, Nº 1, 2013, págs. 1-35
• Idioma: inglés
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• Resumen

  • Abstract:We use NLSY97 data to examine how home price variation affects the quality of postsecondary schools students attend. We find a $10,000 increase in housing wealth increases the likelihood of public flagship university enrollment relative to nonflagship enrollment by 2.0 percent and decreases the relative probability of attending a community college by 1.6 percent. These effects are driven by lower-income families, predominantly by altering student application decisions. We also find home price changes affect direct quality measures of institutions students attend. Furthermore, for lower-income students, each $10,000 increase in home prices leads to a 1.8 percent increase in the likelihood of completing college.