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Low skilled immigration and the expansion of private schools

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  • Davide Dottori

    ()
    (Bank of Italy)

  • I-Ling Shen

    ()
    (Université 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).

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Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 726.

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Date of creation: Oct 2009
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Handle: RePEc:bdi:wptemi:td_726_09

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Keywords: double taxation; education funding; fertility; migration; segregation; voting;

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Cited by:
  1. Gerdes, Christer, 2010. "Does Immigration Induce 'Native Flight' from Public Schools? Evidence from a Large Scale Voucher Program," IZA Discussion Papers 4788, Institute for the Study of Labor (IZA).
  2. Daniele Coen-Pirani, . "Immigration and Spending on Public Education: California, 1970-2000," GSIA Working Papers 2009-E2, Carnegie Mellon University, Tepper School of Business.
  3. Speciale, Biagio, 2012. "Does immigration affect public education expenditures? Quasi-experimental evidence," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 773-783.
  4. Paololo Melindi Ghidi, 2012. "Income Inequality, School Choice and the Endogenous Gentrification of US Cities," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2012006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

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