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Abstract

In the last 20 years many US cities have removed their residency requirements in response to municipal employee demands to choose where they live. We examine the effect of Ohio’s 2006 residency requirement ban on housing prices in the housing markets of Cleveland, Akron, and Dayton. These cities did not comply with the 2006 law until 2009, when the Ohio Supreme Court upheld the ban. Following the Supreme Court ruling we find increases in suburban home prices related to various school performance measures. We find also find adverse housing market effects in the cities of Akron, Cleveland, and Dayton following the 2009 ruling. Finally, to provide a counter-factual, we incorporate data from Cincinnati, which had no citywide residency requirement, into the analysis.

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