The Impact Of Educational Attainment On Homeownership Evidence From China Family Panel Studies

Housing problem and children’s education are not only major livelihood issues, but also hot issues of social concern. The rapid development of real estate market, combined with admission policy in compulsory education, stimulates the abnormal development of the school district room. School district housing prices have constantly raised, which attracted widespread attention. In order to enter primary school, some parents choose to purchase houses nearby school. Whether this behavior is a common practice in general, or just happening in wealthy family. In this paper we examine whether households with children have great motivation to purchase houses. China Family Panel Studies(CFPS) data is using in this analysis. The probit model shows that whether household with or without child has no significant effect in tenure choice. In consideration of the difference among Beijing, Shanghai and Guangdong, we study these three regions, respectively. In Beijing and Shanghai, whether the household with children had no significant effect on household purchase decisions. However, in Guangdong, families with children will be more inclined to purchase house. The outcome is related with housing prices and admission policy. In order to exclude situation that some families are deciding to have children because of the housing, which may have led to biased estimation results. We’ll removed the families who have a house but children younger than one year old from the sample, and defined school-age children as3-16years old children. Estimates are consistent with previous results, suggesting that our empirical results are robust.