Analysis of Decision Factors in the Utilization of Closed School

Abstract

Since 1982, when the Ministry of Education's small school consolidation policy was implemented, a total of 3,922 schools have been closed as of March 2023. Most of the previous studies have focused on analyzing cases and recommending how to utilize them. This study takes a quantitative approach by considering time to examine what factors are considered in the four types of management (non-utilization, self-utilization, lease and sale) after the decision to close. A panel probit model with sample selection bias was applied in three steps. The results showed that the age of the school and the total appraised value of the land and building are important factors in whether the school is utilized; land area, building area, land appraised value, population density, and population growth rate are important factors in whether the school is self-utilized; and land area, price, and financial independence are important factors in whether the school is sold. Through this study, we derived the selection factors that are important for the public sector, which must efficiently manage closed schools, and the private sector, which wants to earn profits by utilizing them and provide useful information for establishing policies necessary to efficiently manage closed schools.