School choice through relocation: evidence from the Washington, DC area

In this paper I show how the monetary value parents place on school quality may be inferred from their residential location choice. The method identifies parental valuation of school quality from the differential effect of school quality on residential choices of households with and without children. I implement the method with 1990 Census data for Washington, D.C. For whites, households with children are willing to pay $1800 more per year for schools generating a 100 SAT point advantage. While some evidence indicates African-American choices are negatively associated with school quality, additional evidence suggests African-American households may be constrained in available choices. (C) 2002 Elsevier Science B.V. All rights reserved.