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PROPERTY LEFT BEHIND: AN UNINTENDED CONSEQUENCE OF A NO CHILD LEFT BEHIND “FAILING” SCHOOL DESIGNATION
Author(s) -
Bogin Alexander,
NguyenHoang Phuong
Publication year - 2014
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12141
Subject(s) - no child left behind , unintended consequences , demographics , property value , stigma (botany) , left behind , demographic economics , perception , quality (philosophy) , property (philosophy) , school choice , value (mathematics) , public economics , political science , economics , business , psychology , sociology , demography , law , accountability , philosophy , psychiatry , machine learning , real estate , epistemology , neuroscience , mental health , computer science , psychotherapist
ABSTRACT Under the No Child Left Behind Act (NCLB), schools receiving Title I funding that fail to meet adequate academic performance targets for two consecutive years are deemed “failing.” This broadly defined, but often misunderstood designation has exerted a negative and unintended effect on low‐income neighborhoods—the same neighborhoods NCLB was originally intended to help. Specifically, we find that “failing” designations significantly decrease home prices. This property value response is observed even after controlling for a myriad of traditional test score measures and school‐level student demographics. Additional analyses suggest that this home price effect is largely due to strong perceptions of poor school quality or social stigma surrounding a “failing” designation.