As we confront the issues about how we are going to rebuild the following study in the Brookings Institution’s Hutchins Roundup might provide an useful argument.
David Wessel, Brookings Institution <hutchinsroundup@brookings.edu>
January 7, 2021
Households value public school spending
How much does local public school spending matter to households? Using data from 1990-2015, Patrick Bayer of Duke, Peter Q. Blair of Harvard, and Kenneth Whaley of University of Houston find that a 1% increase in school spending on teacher and staff salaries, results in a 2.1% increase in housing prices, indicating that households are willing to pay higher home prices to get access to better-funded schools. The authors also find that a 1% increase in local tax revenues reduces house prices by 0.20%. Combining both factors, they estimate that a 1% increase in local taxes spent on school salaries would increase house prices by about 1%. “Our analysis points to both the hiring of more teachers and increasing teacher pay as mechanisms for improving the efficiency of the provision of public schooling in the United States,” the authors conclude.
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