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Reshaping the schooling system: The role of immigration

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  • Dottori, Davide
  • Estevan, Fernanda
  • Shen, I-Ling

Abstract

This paper studies how the schooling system may be impacted by the number and skill type of immigrants. When the number of low-skilled immigrants is large, the education regime tends to become segregated. Wealthy locals are more likely to choose private schools and vote for a lower tax rate to finance public education. In contrast, high-skilled immigrants tend to reinforce the public system. The optimal immigration policy is highly skill-biased. The admission of high-skilled immigrants expedites redistribution toward the less-skilled local households through both a stronger fiscal support for public education and a reduction in the skill wage premium.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 148 (2013)
Issue (Month): 5 ()
Pages: 2124-2149

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Handle: RePEc:eee:jetheo:v:148:y:2013:i:5:p:2124-2149

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Web page: http://www.elsevier.com/locate/inca/622869

Related research

Keywords: Double taxation; Education funding; Immigration policy; Migration; Segregation; Voting;

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References

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  1. David De La Croix & Matthias Doepke, 2009. "To Segregate or to Integrate: Education Politics and Democracy," Review of Economic Studies, Oxford University Press, vol. 76(2), pages 597-628.
  2. Anna Maria Mayda, 2004. "Who is Against Immigration? A Cross-Country Investigation of Individual Attitudes toward Immigrants," Development Working Papers 187, Centro Studi Luca d\'Agliano, University of Milano.
  3. David DE LA CROIX & Matthias DOEPKE, 2002. "Public versus Private Education When Diferential Fertility Matters," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2002013, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  4. David Card, 2009. "Immigration and Inequality," American Economic Review, American Economic Association, vol. 99(2), pages 1-21, May.
  5. David Card, 2005. "Is the New Immigration Really So Bad?," NBER Working Papers 11547, National Bureau of Economic Research, Inc.
  6. Roland Benabou, 2000. "Unequal Societies: Income Distribution and the Social Contract," American Economic Review, American Economic Association, vol. 90(1), pages 96-129, March.
  7. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  8. Fernandez, Raquel & Rogerson, Richard, 1995. "On the Political Economy of Education Subsidies," Review of Economic Studies, Wiley Blackwell, vol. 62(2), pages 249-62, April.
  9. Estelle James, 1993. "Why Do Different Countries Choose a Different Public-Private Mix of Educational Services?," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 571-592.
  10. Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
  11. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August.
  12. Canaday, Neil & Tamura, Robert, 2009. "White discrimination in provision of black education: Plantations and towns," Journal of Economic Dynamics and Control, Elsevier, vol. 33(7), pages 1490-1530, July.
  13. Betts, Julian R. & Fairlie, Robert W., 2003. "Does immigration induce 'native flight' from public schools into private schools?," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 987-1012, May.
  14. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  15. Gradstein, Mark & Justman, Moshe, 2005. "The melting pot and school choice," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 871-896, June.
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