The existence of good schools is expected to increase nearby housing prices. We use a natural experiment from two cities in Korea where the high school entrance system changed from self-selection to geographical assignment. Our empirical results show that the existence of good high schools did...

The Korean high school system is regulated and monitored by then government to ensure that (i) middle school graduates are randomly assigned to private and public high schools and (ii) the tuitions are the same for both institutions. Hence, any difference between the academic performances of the...