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In the us, test score gaps by socioeconomic status and race increase with city size. This paper examines to what extent residential sorting on school quality can explain this fact. We combine 15 years of data on public elementary school students in North Carolina with geocoded school locations...
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effects of real (as opposed to relative) family income on education have practically vanished between the early 1980's and the … early 2000's. After conditioning on a cognitive ability measure (AFQT), family background variables and unobserved … unobserved characteristics, a $300,000 differential in family income generated more than 2 years of education in the early 1980's …
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