to account for the impact of test score volatility and the choice of baseline year. Moreover, they note that, even in states with strong financial incentives, the marginal reward to schools for raising student performance is dwarfed by the expected increase in students' labour market value due to such improvements. In research with Justine Hastings, Kane and Staiger study the determinants of families' school choices and the effectiveness of public school choice plans, finding that parents prefer close-by schools and their valuation of high-performing schools increases in their own academic ability, though such preferences also display strong idiosyncrasies. Moreover, they find that public school choice plans plans are likely to yield a one-sided increase in parental demands for better school quality at already high-performing schools. In further investigation, Kane, Staiger and Hastings observe that — if offered public school choice plans - parents from ethnic minorities trade off high-performing schools against schools wherein their minority is highly represented, whereas parents with high socioeconomic status tend to focus on school performance alone; this results in lower demand for better school quality at schools that serve mostly minority families or families with low socioeconomic status, implying that public school choice plans may exacerbate educational inequality. Moreover, in research with David Deming, Kane, Staiger and Hastings find that college attainment among lottery participants assigned to their first-choice public school increases due to these schools being generally of higher quality, though the gains in college attainment are strongly concentrated among girls since these tend to take better advantage of the improved learning environment (e.g. via preparatory courses for college). With regard to the effectiveness of charter schools, Kane, Angrist, Dynarski, Pathak, and Christopher Walters find that attending a KIPP charter school increases the average achievement of students by 0.36 standard deviations in math and 0.12 standard deviations in reading per year spent in such a school, with most of the gains accruing to students with special needs and limited English proficiency. In further research with Atila Abdulkadiroglu, they also find that being assigned by lottery to a Boston charter school strongly and significantly raises middle and high school students' test scores, whereas being assigned to a pilot school sometimes decreases test scores. Finally, Kane has also studied the relationship between school quality and housing prices: together with Staiger and Stephanie Riegg, he finds evidence that school boundaries systematically affect housing prices, though the impact