Schools and housing markets: An examination of school segregation and performance in Connecticut

This paper estimates a dynamic model of price level, school performance, and school racial and ethnic composition in the State of Connecticut. The paper finds that increasing minority representation in a Labor Market Area reinforces the existing pattern of school segregation. Changes in segregation appear to be influenced by demographic trends in urban areas and by the tabour market factors that determine those trends. There is no evidence, however, to Suggest that this process affects housing prices; rather, the housing market appears to adjust relatively quickly.