Davide, DOTTORI (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics) I. Ling, SHEN (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics)
Abstract
This paper studies the impact of low-skilled immigration on the host countryÕs education policy, which is formulated by the natives via voting and refers to both school funding sources and resources in the public funded schools. When the size of low-skilled immigrants is large, it is found that wealthier natives are likely to opt out from public into private school. Four main effects of immigration are taken into account : (1) greater congestion in public school; (2) lower average tax base for education funding; (3) reduced low-skilled wage and so more low-skilled nativesÕ dependence on public education; (4) higher skill premium, which induces high-skilled natives to privately invest in their childrenÕ s education and hence weakens their support to finance public school. The theoretical predictions are not at odds with cross-country stylized facts revealed in both micro and macro data. Moreover, with endogenous fertility, the opting-out decision taken by some native parents results in the empirically observed fertility differential between natives and immigrants
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Find related papers by 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 - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
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