LOCAL PUBLIC SCHOOLS, PRIVATE SCHOOLS AND A FAMILY'S LOCATION DECISION

Abstract

This paper examines the location choice of families when education is available through local public schools and private schools. According to the theoretical model, families who use public schools sort into communities that offer their desired education quality. Families who choose private schools, on the other hand, locate in communities with low quality public schools because of the low cost of occupying a standardized unit of housing in such areas. This difference in sorting causes the income and rent differentials across communities to be lower when private education is available. A multinomial logit model is estimated to test whether the factors that influence community choice vary between families that use public and private schools. The results indicate little difference with respect to public school quality but a difference with respect to distance from the central business district (CBD). In this sample, it appears that families who use public schools are more likely to locate further from the CDB as income rises compared to families that choose private schools.

Citation

SANDY, J. (1990), "LOCAL PUBLIC SCHOOLS, PRIVATE SCHOOLS AND A FAMILY'S LOCATION DECISION", Studies in Economics and Finance, Vol. 13 No. 1, pp. 31-55. https://doi.org/10.1108/eb028689