Suburbanization, Demographic Change and the Consequences for School Finance
AbstractThe existing literature on the relationship between the share of elderly in a community and the support for local public education has led to mixed results to date. One potential reason behind this is that the share of elderly in a community is endogenous, and it is very difficult to disentangle the effects of individuals aging in place from that of dynamic Tiebout sorting. The point of this paper is to carefully document the degree to which aging in place has occurred in the American suburbs, and to estimate the degree to which it has influenced school finance once the initial settlers of these suburbs were no longer the parents of school-aged children. We hand-match data from the 1950 and 1960 Censuses of Population and Housing to more recent data to link postwar suburban development to later school finance. Using a novel method for identifying the causal effects of aging in place, we find that the share of elderly adults who age in place is negatively related to the level of support for public schooling, and that this is particularly true for school districts in metropolitan areas where the school-aged population is more heavily nonwhite relative to the elderly population.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16137.
Date of creation: Jun 2010
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Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- I20 - Health, Education, and Welfare - - Education - - - General
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance
- J1 - Labor and Demographic Economics - - Demographic Economics
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
- Brunner, Eric & Balsdon, Ed, 2004.
"Intergenerational conflict and the political economy of school spending,"
Journal of Urban Economics,
Elsevier, vol. 56(2), pages 369-388, September.
- Ed Baldson & Eric Brunner, 2003. "Intergenerational Conflict and the Political Economy of School Spending," Working papers 2003-24, University of Connecticut, Department of Economics.
- Thomas A. Downes & David N. Figlio, 1999. "Economic inequality and the provision of schooling," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 99-110.
- Figlio, David N. & Fletcher, Deborah, 2012. "Suburbanization, demographic change and the consequences for school finance," Journal of Public Economics, Elsevier, vol. 96(11), pages 1144-1153.
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