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Low skilled immigration and the expansion of private schools

Author

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  • Davide Dottori

    (Bank of Italy)

  • I-Ling Shen

    (Universit� catholique de Louvain)

Abstract

A political-economic model is provided to study the impact of low-skilled immigration on the receiving country's education system, in terms of sources of school funding, expenditure per pupil, and type of parents who are more likely to send children to privately funded schools. The education regime results from the interplay between households' choices on fertility and education and the public education provided. No exogenous culturally-based difference is assumed among agents. Low-skilled migrant workers differ from their local counterparts only in voting rights and adjustment costs. The impact of immigration on public school congestion, tax base, wages and skill premium are considered. When the number of low-skilled immigrants is large, the education regime tends to become more segregated, with wealthier locals more likely to opt out of the public system into private schools. The fertility differential between high- and low-skilled locals increases due to a quantity/quality trade-off. The theoretical predictions conform to stylized facts revealed in US census data and OECD PISA (2003).

Suggested Citation

  • Davide Dottori & I-Ling Shen, 2009. "Low skilled immigration and the expansion of private schools," Temi di discussione (Economic working papers) 726, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_726_09
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    Cited by:

    1. Astghik Mavisakalyan, 2011. "Immigration, Public Education Spending, and Private Schooling," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 397-423, October.
    2. Calin Arcalean & Ioana Schiopu, 2016. "Inequality, opting-out and public education funding," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(4), pages 811-837, April.
    3. Gerdes, Christer, 2010. "Does Immigration Induce ‘Native Flight’ from Public Schools? Evidence from a large scale voucher program," SULCIS Working Papers 2010:1, Stockholm University, Linnaeus Center for Integration Studies - SULCIS.
    4. Speciale, Biagio, 2012. "Does immigration affect public education expenditures? Quasi-experimental evidence," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 773-783.
    5. Coen-Pirani, Daniele, 2011. "Immigration and spending on public education: California, 1970–2000," Journal of Public Economics, Elsevier, vol. 95(11), pages 1386-1396.
    6. Paololo Melindi Ghidi, 2012. "Income Inequality, School Choice and the Endogenous Gentrification of US Cities," LIDAM Discussion Papers IRES 2012006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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    More about this item

    Keywords

    double taxation; education funding; fertility; migration; segregation; voting;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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