A Promotion Of Education Quality Benefits "Whom"

Under the regime of "nearby-enrollment",only school-aged children living in the designated catchment area are able to attend the specific primary school.Therefore,citizens will pay extra cost of purchasing a house for the high-quality educational resources nearby.This cost also refers to the capitalization effects of education quality.An accurate identification of this capitalization effects would help policy makers to optimize the allocation of scarce public goods.Previous specification are often biased as a consequence of endogeneity,meanwhile they overlook the the heterogeneous impacts in varying sub-markets.This paper will view the school district adjustment in 2012 in Hangzhou as the quasi-experimental context,utilize the transaction records of second-handed residential houses from July 2011 to May 2013,combine the difference-in-difference model and quantile regression to obtain a precise estimation and depict the heterogeneity of capitalization effects brought by education quality.Our results show that when the prerequisite of common trend is satisfied,the choice of control group would affect our estimation.After the control group with the most comparability is chose,our model illustrates that a one-level increase in the education quality will contribute to a 878-yuan/m2 price premium;the premium would be more obvious for high-priced houses,up to 1440-yuan/m2 while the low-priced houses is not significantly influenced.As time goes by,the medium-priced and low-priced houses become affected significantly.Results above demonstrate that policy in the future should ensure the rights of low-income groups to attend the primary school,and guard against the gentrification of low-priced houses.