The Impact of School Facility Investments on Students and Homeowners: Evidence from Los Angeles
- (pp. 254-89)
Abstract
We study school facility investments using administrative records from Los Angeles. Exploiting quasi-random variation in the timing of new facility openings and using a residential assignment instrument, we find positive impacts on test scores, attendance, and house prices. Effects are not driven by changes in class size, peers, teachers, or principals, but some evidence points toward increased facility quality. We evaluate program efficiency using implied future earnings and housing capitalization. For each dollar spent, the program generated $1.62 in household value, with about 24 percent coming directly through test score gains and 76 percent from capitalization of non-test-score amenities.Citation
Lafortune, Julien, and David Schönholzer. 2022. "The Impact of School Facility Investments on Students and Homeowners: Evidence from Los Angeles." American Economic Journal: Applied Economics, 14 (3): 254-89. DOI: 10.1257/app.20200467Additional Materials
JEL Classification
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- H76 State and Local Government: Other Expenditure Categories
- I21 Analysis of Education
- I26 Returns to Education
- J31 Wage Level and Structure; Wage Differentials
- R31 Housing Supply and Markets
- R53 Public Facility Location Analysis; Public Investment and Capital Stock
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