I examine changes in the city-suburban housing price gap in metropolitan areas with and without court-ordered desegregation plans over the 1970s, narrowing my comparison to housing units on opposite sides of district boundaries. Desegregation of public schools in central cities reduced the demand for urban residence, leading urban housing prices and rents to decline by 6 percent relative to neighboring suburbs. Aversion to integration was due both to changes in
peer composition and to student reassignment to nonneighborhood
schools. The associated reduction in the urban tax base imposed a fiscal externality on remaining urban residents. (JEL H75, I21, I28, J15, R23, R31)
Boustan, Leah Platt.
"School Desegregation and Urban Change: Evidence from City Boundaries."
American Economic Journal: Applied Economics,
State and Local Government: Health; Education; Welfare; Public Pensions
Analysis of Education
Education: Government Policy
Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
Urban, Rural, Regional, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Housing Supply and Markets