| ID | 161836 |
| Title Proper | Unequal school enrollment rights, rent yields gap, and increased inequality |
| Other Title Information | the case of Shanghai |
| Language | ENG |
| Author | Zhang, Muyang |
| Summary / Abstract (Note) | This paper first builds a simple theoretic model to explore how a special feature of enrollment policy of public primary schools in urban China, the unequal enrollment right between home owners and tenants, would produce rent-yields gap between different housings. The model also predicts that an enrollment policy featuring with tenant discrimination, accompanying with strict credit constraint, would reduce the chance of kids from middle-income families to attend better public schools while allow families with high initial wealth to access better high-quality public education at a lower cost. Using a hedonic pricing model, we find that, in Shanghai, rental yields of housings in neighborhoods associated with reputed public primary schools is on average 0.1–0.35 percentage-point lower than those associated with ordinary ones. We also explore how the rent-yields-gap varies across housing types, locations and changes over time. Nonetheless, our simulation computation suggests that the estimated opportunity cost of holding such schools in Shanghai is generally not a big amount and affordable for many families. Overall, the high entry costs of owing a housing is the major obstacle to access high-quality public primary education in urban China. These findings highlight how an education policy with features of inequality may contribute to education and residential segregation, and then reduce intergenerational mobility. |
| `In' analytical Note | China Economic Review Vol. 49; Jun 2018: p.229-240 |
| Journal Source | China Economic Review 2018-05 49 |
| Key Words | Credit Constraint ; School Quality ; Tenant Discrimination ; Rental Yield |