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Title: Public Education and Intergenerational Housing Wealth Effects

Citation Type: Working Paper

Publication Year: 2023

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Abstract: While rising house prices benefit existing homeowners, we document a new channel through which price shocks have intergenerational wealth effects. Using panel data from school zones within a large U.S. school district, we find that higher local house prices lead to improvements in local school quality, thereby increasing child human capital and future incomes. We quantify this housing wealth channel using an overlapping generations model with neighborhood choice, spatial equilibrium, and endogenous school quality. Housing market shocks in the model generate large intra- and intergenerational wealth effects, with the latter accounting for over half of total wealth effects.

Url: https://www.nber.org/system/files/working_papers/w31345/w31345.pdf

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Authors: Gilraine, Michael; Graham, James; Zheng, Angela

Series Title: NBER Working Paper Series

Publication Number: 31345

Institution: National Bureau of Economic Research

Pages: 1-71

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Data Collections: IPUMS CPS

Topics: Housing and Segregation, Poverty and Welfare

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