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Does immigration affect public education expenditures? Quasi-experimental evidence

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  • Speciale, Biagio
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    Abstract

    This paper studies the impact of immigration on public education expenditures in EU-15 countries. Identification comes from the use of the 1990s Balkan wars (in Bosnia and Kosovo) as a source of exogenous variation in immigrant inflows to mitigate a possible Tiebout-type bias from endogenous mobility. An increase in foreign population is found to have a small negative effect on public education expenditures. The elasticity of education spending with respect to immigrant population share is −.15. The negative relationship between immigration and public spending on education is consistent with the empirical literature showing evidence on low levels of public good provision in heterogeneous and ethnic diverse societies.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Public Economics.

    Volume (Year): 96 (2012)
    Issue (Month): 9-10 ()
    Pages: 773-783

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    Handle: RePEc:eee:pubeco:v:96:y:2012:i:9:p:773-783

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    Web page: http://www.elsevier.com/locate/inca/505578

    Related research

    Keywords: Immigration; Public spending on education; Tiebout-type bias; Quasi-experimental evidence;

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    Cited by:
    1. Jakobsson, Niklas & Tengstam, Sven, 2014. "Does immigration affect welfare state generosity? Quasi-experimental evidence," Working Papers in Economics 599, University of Gothenburg, Department of Economics.
    2. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2014. "Immigration, occupational choice and public employment," CREA Discussion Paper Series 14-15, Center for Research in Economic Analysis, University of Luxembourg.

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