House Prices and School Quality: The Impact of Score and Non-score Components of Contextual Value Added in UK (New Version)
Date Issued
May 2011
Author(s)
Abstract
This paper investigates how the score and non-score components of the newly
introduced Contextual Value Added (CVA) indicator of school quality affect house
prices in the catchment area of primary and secondary schools in England. The
empirical analysis, based on data drawn from UK data sources, shows that the score
component of CVA is positively associated with house prices at both primary and
secondary levels of education; while its non-score component has a negative
significant association with house prices in the analysis of secondary school data,
but no significant association in the corresponding analysis of primary school data.
Furthermore, the willingness of households to pay more for a high quality
secondary education appears to depend entirely on the final score and is influenced
by school comparison within (rather than between) Local Authorities. For primary
schools, however, the non-score component of CVA also adds to house prices. This
appears to be more so between Local Authorities, highlighting the ‘public good’
nature of this school quality indicator.
introduced Contextual Value Added (CVA) indicator of school quality affect house
prices in the catchment area of primary and secondary schools in England. The
empirical analysis, based on data drawn from UK data sources, shows that the score
component of CVA is positively associated with house prices at both primary and
secondary levels of education; while its non-score component has a negative
significant association with house prices in the analysis of secondary school data,
but no significant association in the corresponding analysis of primary school data.
Furthermore, the willingness of households to pay more for a high quality
secondary education appears to depend entirely on the final score and is influenced
by school comparison within (rather than between) Local Authorities. For primary
schools, however, the non-score component of CVA also adds to house prices. This
appears to be more so between Local Authorities, highlighting the ‘public good’
nature of this school quality indicator.