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Opting-out of Public Education in Urban Economies

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Abstract

We investigate how mobility among communities in residence-based public education systems influence households’ choices among public and private schooling. With this objective, we construct a model in which households differ along a single dimension: income. Intermediate income households unsatisfied with their local public school can either move to a community with a better public school or, if the price of housing there is very high, not move and acquire private education. If they choose the latter, perfect income stratification across educational sectors no longer characterizes equilibrium. Moreover, the private schools these households choose have lower quality than some private counterparts.

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  • Francisco Martínez Mora, 2003. "Opting-out of Public Education in Urban Economies," Economic Working Papers at Centro de Estudios Andaluces E2003/52, Centro de Estudios Andaluces.
    • Handle: RePEc:cea:doctra:e2003_52
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    More about this item

    Keywords

    education; hierarchy of school qualities; school choice; stratification; Tiebout.;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • I20 - Health, Education, and Welfare - - Education - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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