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Low-Skilled Immigration and the Expansion of Private Schools

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  • Dottori, Davide

    ()
    (Université catholique de Louvain)

  • Shen, I-Ling

    ()
    (Milken Institute)

Abstract

This paper provides a political-economic model to study the impact of low-skilled immigration on the host country's education system, which is characterized by sources of school funding, the average expenditure per pupil, and the type of parents who are more likely to send their children to publicly or privately funded schools. Four main effects of immigration are considered: (1) greater congestion in public schools; (2) a lower average tax base for education funding; (3) reduced wages for low-skilled workers and so more dependence by low-skilled locals on public education; (4) a greater skill premium, which makes it easier for high-skilled locals to afford private education for their children, and hence weakens their support for financing public school. It is found that when the size 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 are consistent with empirical evidence from both the U.S. census data and the OECD Programme for International Student Assessment (2003).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3946.

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Length: 59 pages
Date of creation: Jan 2009
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Handle: RePEc:iza:izadps:dp3946

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Keywords: voting; taxes and subsidies; education; fertility; migration;

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  1. Facchini, Giovanni & Mayda, Anna Maria, 2006. "Individual Attitudes towards Immigrants: Welfare-State Determinants Across Countries," IZA Discussion Papers 2127, Institute for the Study of Labor (IZA).
  2. Woojin Lee & John E. Roemer, 2004. "Racism and Redistribution in the United States: A Solution to the Problem of American Exceptionalism," Cowles Foundation Discussion Papers 1462, Cowles Foundation for Research in Economics, Yale University.
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  5. David de la Croix & Matthias Doepke, 2001. "Inequality and Growth: Why Differential Fertility Matters," UCLA Economics Working Papers 803, UCLA Department of Economics.
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  16. Johnson, George E, 1984. "Subsidies for Higher Education," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 303-18, July.
  17. Frédéric Docquier & B. Lindsay Lowell & Abdeslam Marfouk, 2009. "A Gendered Assessment of Highly Skilled Emigration," Population and Development Review, The Population Council, Inc., vol. 35(2), pages 297-321.
  18. Fernandez, Raquel & Rogerson, Richard, 1996. "Income Distribution, Communities, and the Quality of Public Education," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 135-64, February.
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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. Coen-Pirani, Daniele, 2011. "Immigration and spending on public education: California, 1970–2000," Journal of Public Economics, Elsevier, vol. 95(11), pages 1386-1396.
  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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