Public Education for the Children Left Behind
AbstractThis paper examines the role of public education in the context of parental migration, and it studies the effects of an expansive income tax policy that is adopted to increase public education expenditure per pupil. It is shown that such a policy may exacerbate income inequality in the long run if for the less skilled dynasties, the benefits of more public spending on education does not make up for the negative effects of increased parental absences. However, if the migration-induced tax base erosion is not severe, an expansive income tax policy indeed enhances future human capital for all dynasties, and moreover, it may help the less skilled households escape from the poverty trap, thus reducing long-run inequality.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010006.
Date of creation: 16 Mar 2010
Date of revision:
Human Capital; Income Inequality; Parental Migration; Public Education Expenditure; Tax Base Erosion;
Other versions of this item:
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-15 (All new papers)
- NEP-EDU-2010-05-15 (Education)
- NEP-HAP-2010-05-15 (Economics of Happiness)
- NEP-HRM-2010-05-15 (Human Capital & Human Resource Management)
- NEP-LAB-2010-05-15 (Labour Economics)
- NEP-MIG-2010-05-15 (Economics of Human Migration)
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