PARENTAL VALUATION OF PRIORITY ADMISSION INTO GOOD SCHOOLS: EVIDENCE FROM SINGAPORE'S REVISED PRIMARY ONE REGISTRATION SCHEME

Abstract

Using a difference-in-difference strategy, I study the effects of a 1992 revision in Singapore’s primary school priority admission zones on parental valuation of homes within 1km/2km zones of good primary schools. I find that the policy revision caused significant increases in resale prices between 1-2km of government-aided schools. On average, resale prices of homes between 1-2km of government-aided schools in the post-intervention period increased by 1.43%, with an additional 1.37% increase between the 1992 and 1993 registration cycles; I also find an average price premium of 0.39% for each additional government-aided school between 1-2km. Additionally, I find a significant price premium of 0.80% for each additional government-aided school within 1km. I did not find any significant effects within 2km of SAP schools. This indicates that the policy revision caused a significant increase in parental valuation of priority admission into government-aided schools, but did not cause significant changes for SAP schools.