California's statewide class size reduction program: Effects outside the clasroom

This paper sheds new light on responses to major education reforms. It does so in the context of California's statewide class size reduction program of the late-1990s, and makes two main contributions.

The paper shows that improvements in public school quality caused marked reductions in local private school shares, consequent changes in public school demographics, and significant increases in local house prices -- the latter indicative of the reform's full impact.