The Spatial Impact of Language Policies on the Marginal Bids for English Education in Hong Kong

In 1997 the government of Hong Kong reformed its policy on the language medium for teaching at the secondary-school level and removed schools' right to choose their own medium. Among the 404 public and "aided" secondary schools in Hong Kong, the government allowed only 100 to use English as the medium for teaching and required the remaining 304 to use the native language, Chinese. The authors assess the spatial impact of the policy reform and estimate the bid function for English-language schools. The results show that the 1997 policy reform shifted parental preferences from public to private education and increased the marginal bid for proximity to private English schools by 2 percent. Following the reform, homeowners were willing to pay, on average, HK $8,400 for each additional 100 metres closer to a private English school.