The Value of School Social Climate Information: Evidence from Chicago Housing Transactions

Educational institutions increasingly measure and publish indicators of social climate. I exploit a plausibly exogenous shock of Chicago school information to examine how social climate information is capitalized into housing markets and affects homebuyer sorting. Using border discontinuities, event studies, and difference-in-differences designs, I find public disclosure raises prices for homes assigned to schools with better climate ratings, with suggestive evidence that higher-income families sort into these homes. A second, less publicized disclosure produced weaker price capitalization but significant responses among higher-income households, suggesting differences in access to information. The findings provide revealed-preference evidence that families value school climate quality. (JEL D83, H75, I21, I28, J13, J45, J81)