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To segregate or to integrate: education politics and democracy

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Author Info
Matthias Doepke
David de la Croix

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Abstract

In most democracies, the majority of education expenditures is financed by the government. In non-democracies, we observe a wide variation in the mix of public and private funding of education. In addition, countries with high inequality tend to rely more heavily on private schooling. We develop a theory which integrates private decisions on education and fertility with voting on public schooling expenditures. The theory is able to account for the facts mentioned above. Countries with high inequality exhibit more private education expenditures since rich people opt out of the public system. In non-democracies, concentration of political power leads to multiple equilibria in the determination of public education spending.

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Paper provided by Society for Economic Dynamics in its series 2004 Meeting Papers with number 390.

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Date of creation: 2004
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Handle: RePEc:red:sed004:390

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Related research
Keywords: Education Funding Inequality Voting Political Power Segregation

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Find related papers by JEL classification:
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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References listed on IDEAS
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Cited by:
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  1. Ryuichi Tanaka, 2004. "On the Costs and Benefits of a Mixed Educational Regime," Econometric Society 2004 Far Eastern Meetings 470, Econometric Society. [Downloadable!]
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