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Education Politics, Schooling Choice and Public School Quality: The Impact of Income Polarisation

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Abstract

What is the role of income polarisation for explaining differentials in public funding of education? To answer this question, we provide anew theoretical modelling for the income distribution that can directly monitor income polarisation. It leads to a new income polarisationindex where the middle class is represented by an interval. We implement this distribution in a political economy model with endogenousfertility and public/private educational choices. We show that when households vote on public schooling expenditures, polarisation mattersfor explaining disparities in public education funding across communities. Using micro-data covering two groups of school districts, wefind that both income polarisation and income inequality affect public school funding with opposite signs whether there exist a Tax Limitation Expenditure (TLE) or not.

Suggested Citation

  • Majda Benzidia & Michel Lubrano & Paolo Melindi-Ghidi, 2022. "Education Politics, Schooling Choice and Public School Quality: The Impact of Income Polarisation," AMSE Working Papers 2229, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:2229
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    Cited by:

    1. is not listed on IDEAS
    2. Paolo Melindi‐Ghidi, 2018. "Inequality, educational choice, and public school quality in income‐mixing communities," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 20(6), pages 914-943, December.

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    Keywords

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    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General

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