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Reshaping the schooling system: The role of immigration

Author

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  • Dottori, Davide
  • Estevan, Fernanda
  • Shen, I-Ling

Abstract

This paper studies how the schooling system may be impacted by the number and skill type of immigrants. When the number of low-skilled immigrants is large, the education regime tends to become segregated. Wealthy locals are more likely to choose private schools and vote for a lower tax rate to finance public education. In contrast, high-skilled immigrants tend to reinforce the public system. The optimal immigration policy is highly skill-biased. The admission of high-skilled immigrants expedites redistribution toward the less-skilled local households through both a stronger fiscal support for public education and a reduction in the skill wage premium.

Suggested Citation

  • Dottori, Davide & Estevan, Fernanda & Shen, I-Ling, 2013. "Reshaping the schooling system: The role of immigration," Journal of Economic Theory, Elsevier, vol. 148(5), pages 2124-2149.
  • Handle: RePEc:eee:jetheo:v:148:y:2013:i:5:p:2124-2149
    DOI: 10.1016/j.jet.2013.07.003
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    References listed on IDEAS

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    1. Betts, Julian R. & Fairlie, Robert W., 2003. "Does immigration induce 'native flight' from public schools into private schools?," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 987-1012, May.
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    9. de la Croix, David & Doepke, Matthias, 2004. "Public versus private education when differential fertility matters," Journal of Development Economics, Elsevier, vol. 73(2), pages 607-629, April.
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    Citations

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    Cited by:

    1. Luca Marchiori & Patrice Pieretti & Benteng Zou, 2014. "Immigration, occupational choice and public employment," CREA Discussion Paper Series 14-15, Center for Research in Economic Analysis, University of Luxembourg.
    2. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    3. Paolo Melindi-Ghidi, 2016. "Inequality, Educational Choice and Public School Quality in Income Mixing Communities," AMSE Working Papers 1629, Aix-Marseille School of Economics, Marseille, France.
    4. Ortega, Francesc & Tanaka, Ryuichi, 2015. "Immigration and the Political Economy of Public Education: Recent Perspectives," IZA Discussion Papers 8778, Institute for the Study of Labor (IZA).
    5. Tanaka, Ryuichi & Farré, Lídia & Ortega, Francesc, 2014. "Immigration, Naturalization, and the Future of Public Education," IZA Discussion Papers 8342, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    Double taxation; Education funding; Immigration policy; Migration; Segregation; Voting;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • 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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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