Testing the Effect of Family Characteristics on Locational Choice for Residence

Abstract

This paper examines the importance of family characteristics in choosing location for residence, especially school districts. In testing this fact, I employ two data set the PSID and the Census of Government. Finance Statistics. The main finding is that families with a lower total child-care time available choose school districts with a higher expenditure to compensate for their time. If we recognize that parental child-care time is important in occurring intergenerational wealth transfer through the cognitive development of the child, this kind of parental compensatory behavior can play an important role in neutralizing variations of the future income of children.