Pricing the Value of the Chance to Gain Admission to an Elite Senior High School in Beijing: The Effect of the LDHSE Policy on Resale Housing Prices
Elite schools are highly sought after worldwide. Measuring the influence of elite schools on housing prices is an important issue not only to researchers but also to all residents. On March 19, 2015, the Beijing municipal government enacted a policy called locking districts for senior-high-school admission examination (hitherto referred to as LDHSE). This policy prevents senior high schools in the Xicheng, Dongcheng, and Haidian districts, where the most elite senior high schools in Beijing are located, from admitting students from other districts. This study explores the effect of the LDHSE policy on housing prices, and estimates the value of the chance to gain admission to an elite senior high school in Beijing, China. Using the difference-in-difference (DID) + regression discontinuity design (RD) methodology, we find an overall 5.4% rise in housing prices in locked districts. After narrowing the bandwidths, we find a rise of approximately 6.4%, 3.4%, 2.8%, 3.5%, and 2.7% for bandwidths within 5 km, 2 km, 1 km, IK optimal bandwidth 2.687 km, and CCT optimal bandwidth 1.680 km, respectively. Furthermore, the LDHSE increases the transaction volume, supporting the argument that the policy definitively increases the demand for housing in districts with high-quality schools. The value of the chance to gain admission to an elite senior high school is estimated to be approximately 1.18-1.37 million CNY. These results reflect the fact that households not only attach great importance to children's education, but also choose to pay a hefty price to create future opportunities of access to elite high schools for their children.
韩军，中国人民大学劳动人事学院劳动经济系主任，副教授，主要研究领域为劳动经济学、国际经济学、发展经济学和教育经济学，主持多项国家自然科学基金课题（面上两项，青年一项），参与国家自然科学基金重点课题，在国内外一流期刊发表多篇论文：Journal of International Economics （两篇）,Industrial & Labor Relations Review, Journal of Population Economics, China Economic Review，和《中国社会科学》等。主持历年来“双一流”项目：中国雇主雇员匹配数据调查2017, 2019和2021。并且组织多个会议GLO-Renmin International Labor Conference和中国劳动经济学前沿论坛等。