Abstract
We examine housing market and residential mobility changes that occur soon after a school fails to achieve Adequate Yearly Progress (AYP) in Charlotte, NC. Students within attendance zones of failing schools are given priority in lotteries for oversubscribed schools, potentially increasing the attractiveness of living in a failing school attendance zone. We find that housing prices, homebuyer income and the probability of attending a non-assigned school increase in the highest quality neighborhoods within failing school attendance zones. Our results are driven largely by the behavior of new residents who exploit the school choice advantages offered by failure to achieve AYP.
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